- Ali Martinez says Ethereum could reach $2,060 if the $1,850 support remains intact.
- ETH exchange reserves continue to decline, pointing to tighter supply across major platforms.
- Funding rates are rising, showing stronger bullish sentiment without overheating the market.
Ethereum is gearing up for another move higher after rebounding from a key support level, according to crypto analyst Ali Martinez.
His latest chart reveals ETH is still trading within a rising price channel. Martinez said Ethereum bounced after testing the lower boundary of its ascending channel on the one-hour chart.
As long as the $1,850 support holds, he believes ETH could rally toward the channels upper boundary near $2,060.
Ethereum is currently trading at $1,861.87, down 1.96% over the past 24 hours, according to CoinMarketCap. Despite the daily decline, the cryptocurrency remains up 1.63% over the past week and 13% over the past month.
$1,850 Remains the Key Support
Martinezs chart shows Ethereum recovering after pulling back to the lower trendline of its ascending channel. He said holding the $1,850 level is important to keep the current bullish structure intact.
If buyers continue defending that support, ETH could retest the top of the channel around $2,060. However, a break below the channel could invalidate the short-term bullish outlook and open the door to further losses.
Source: XEthereum Exchange Supply Keeps Falling
Martinezs technical outlook is supported by on-chain data showing a decline in exchange-held ETH. Earlier, CryptoQuant analyst Amr Taha reported that about 658,600 ETH has left Gemini and Bitfinex since April and May, respectively. At current prices, the withdrawn ETH is worth roughly $1.24 billion.
Gemini‘s Ethereum reserves have dropped to their lowest level since March 2024. Bitfinex has also recorded a sharp decline in reserves. Meanwhile, Binance’s ETH balance has remained relatively steady at around 3.8 million ETH.
Lower exchange reserves typically mean less ETH is readily available for sale. However, Taha noted that reserve declines alone do not guarantee higher prices.
Related: Ethereum Price Prediction: Can ETH Break $2,000 as ETF Demand Splits From Bitcoin？
Funding Rates Point to Stronger Bullish Sentiment
Ethereums derivatives market is also showing signs of improving sentiment. According to Arab Chain, the 30-day simple moving average of Binance Ethereum perpetual funding rates recently rose to about 0.00339. That is the highest level in six months.
Positive funding rates suggest traders are increasingly willing to pay to keep long positions open. This generally reflects growing confidence in further upside.
Even so, Arab Chain said funding rates remain below levels that have historically signaled an overheated market. That suggests bullish sentiment is strengthening without reaching extremes.
Taken together, falling exchange reserves, improving derivatives sentiment, and Ethereum‘s defense of the $1,850 support level strengthen the case for a move toward Martinez’s $2,060 target if bullish momentum continues.