Ethereum's recovery is facing its first significant test as it tries to break through the $1800 level. The altcoin has rebounded from a low of $1500 and is moving towards a key supply zone where sellers are still holding ground.
According to CryptoQuant data, reserves at Binance have climbed to 3.893 million ETH, while OKX continues to receive fresh inflows, adding more ETH available for sale. Bitfinex reserves have fallen from 2.7 million to 2.2 million ETH, indicating accumulation is occurring but remains concentrated.
The $1800 level overlaps one of Ethereum's largest cost basis clusters, resulting in many holders being near breakeven and selling into strength as investors exit positions.
Unless fresh demand absorbs the growing supply and recaptures $2000, recovery risks slowing before profitability returns broadly.