Ethereum Price Forecast: What does ETH’s dip below $2,400 signal as exchange reserves decline?

Ethereum price today: Can ETH find support at $2,370?

• Selling pressure hits ETH and stocks, with the token down 5% as Middle East tensions and AI-related spending erase the previous two days' gains.
• Signs of buying on declines emerge as exchange reserves shrink and large wallets add ETH.
• Following rejection at the confluence of the 20- and 50-day EMAs, ETH may find support around $2,355.

Selling pressure pushed Ethereum (ETH) below $2,400 on Thursday, with the crypto market weighed down by a fresh escalation in US-Iran tensions and AI-related spending.

Over the past 24 hours, the leading altcoin has lost 5%, wiping out gains made over the previous two days. Coinglass data shows liquidations of $93 million, of which long positions made up roughly $85.3 million.

Across the broader crypto market, losses reached 4%, while liquidations over the past 24 hours totalled roughly $454 million.

Renewed tensions between the US and Iran preceded the sell-off. On Wednesday, President Donald Trump ruled out negotiation talks with Tehran, saying "something" will happen "fair soon." Additional Houthi attacks on Saudi Arabia raised fears of further disruption to Middle East supply chains.

Brent crude subsequently climbed 3.8% to $113 per barrel, while equities sold off sharply. The tech-heavy Nasdaq shed 2.8% as worries over AI-related spending wiped out Wednesday's gains, despite better Q3 tech earnings. A shift towards safe-haven assets drove the benchmark US 10Y Treasury Yield below 5%, marking its lowest level in nearly a month.

Are falling exchange reserves and large-wallet purchases signalling ETH dip buying?

On-chain indicators point to buying on declines even as prices move lower.

Over the past 48 hours, Ethereum exchange reserves fell by 170K ETH to 14.882M ETH. This measure tracks coins held in exchange wallets. The decline may reflect transfers from exchanges into self-custody, potentially reducing the supply available for selling.

Several whale, or large-holder, wallets have also added ETH over the past 24 hours, according to on-chain smart money tracker Lookonchain.

A separate wallet has been shifting holdings out of Bitcoin. On Thursday, it sold 246.25 BTC ($20.64 million) and purchased 8,286 ETH ($20.64 million). Lookonchain noted that the wallet's transactions over the past 11 days totalled sales of 1,917.7 BTC and purchases of 64,545 ETH.

Ethereum technical outlook: Can $2,355 support hold for ETH?

Failure to stay above the confluence of the 20-day and 50-day Exponential Moving Averages (EMAs) sent ETH below $2,400. Throughout the past week, bears have repeatedly stepped up selling around these short-term EMAs.

The 100-day EMA and the $2,355 horizontal level are now coming into focus as the leading altcoin approaches them. The latter has reliably provided support for the past eight days. A break lower could bring a test of the $2,204 horizontal level, followed by the $2,026 base.

To challenge higher resistance levels, ETH needs to maintain a daily close above the short-term EMAs and establish them as support.

Bearish momentum remains dominant: the 14-day Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are falling, with readings of 39 and 26, respectively. Both are approaching oversold territory.