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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Sep 29, 2025 09:22 UTC
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Ethereum Reserves Drop on Exchanges, $11B Shorts at Risk, ETH Eyes $5900!
Ethereum reserves are falling on exchanges, signaling strong buying interest and potential price surge soon.
Over $11 billion in ETH short positions could face liquidation above $4,200 price level.
Analysts predict Ethereum may climb to $5,900 if support holds and momentum continues upward.
Ethereum is back in focus, not for big price moves, but because coins are leaving exchanges fast, showing strong buying interest. At the same time, over $11 billion in short positions could be forced to close if ETH climbs above $4,200.
Currently trading around $4,122, Ethereum sits on the edge of a possible breakout, with analysts eyeing a rise to $4,950, and maybe even $5,900.
Could this be the next major surge for Ethereum?
Why ETH Is Leaving Exchanges
According to a recent analysis shared by a CryptoQuant analyst, ETH reserves on spot exchanges are dropping fast. The analyst explained that investors are increasingly moving ETH off exchanges, either into self-custody or for staking, and this usually happens for two reasons.
- Old holders shifting coins for safekeeping, which doesn’t necessarily move the price.
- Fresh buyers who withdraw right after purchasing can create upward pressure.
The current situation seems to be leaning toward the second case — new demand entering the market, followed by withdrawals, reducing the amount of ETH available for sale.
$11B Shorts at Risk if ETH Hits $4,200
Alongside falling Ethereum reserves on exchanges, another factor could fuel the next rally. According to Coinglass, more than $11 billion worth of ETH shorts are at risk if the price climbs above $4,200.
This means traders betting against Ethereum might be forced to buy back their positions, pushing the price higher.
As of now, ETH is trading around $4,122, just below the critical liquidation threshold.
ETH Price To Hit $4900
For now, Ethereum is holding steady well above $4100, and prominent analyst Crypto GEMs says that Ethereum has been trading inside a massive symmetrical triangle, a technical pattern that usually signals strong price action once a breakout happens.
He suggests that the breakout sparked a quick surge to nearly $4,950, reminding investors that ETH can still move with force when momentum kicks in.
Being more bullish , if this support holds and ETH begins climbing again, the next major milestone lies near $5,900, where a head-and-shoulders technical target sits.
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FAQs
ETH reserves on exchanges have fallen to multi-year lows as investors move coins to self-custody or staking. This signals strong buying interest from new demand, reducing sell-side supply and often sparking upward price pressure in bull markets.
Analysts suggest holding above $4,100 could lead to a rally toward $4,950. A more bullish target sits near $5,900 if strong momentum and buying pressure continue.
Market dynamics like high liquidation levels and exchange outflows can be bullish. However, always assess your own research and risk tolerance, as crypto markets are volatile.
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