Ethereum Reserves Drop on Exchanges, $11B Shorts at Risk, ETH Eyes $5900!

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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.