Key TakeawaysETH maintains position above $1,960 with critical resistance zone at $2,080–$2,120Breaking through $2,150 may spark a short squeeze rally toward $2,800Short liquidations exceeded $250 million across the past dayExchange balances for Ethereum have declined to 16 million ETH, marking a multi-year minimumInvestors are transferring ETH into staking platforms, cold wallets, and DeFi applications instead of liquidatingEthereum (ETH) maintains its position above the $1,960 mark following consolidation near $1,920 during the earlier trading session.Ethereum (ETH) PriceThe digital asset pushed past the $2,000 threshold and reached an intraday peak of $2,089 before experiencing a modest retracement. Currently, ETH is holding ground above its 100-hourly Simple Moving Average.Market activity has surged 15% during the last 24-hour period, reaching $26 billion in trading volume—approximately 11% of ETH’s total circulating market capitalization.This level of trading activity indicates robust demand within the current price zone.Bears Face Mounting LossesShort position liquidations have exceeded $50 million throughout the previous three days as bullish traders successfully protect the $2,000 threshold.Source: CoinglassWithin just one 24-hour period, approximately $250 million worth of short positions were eliminated across digital asset markets.Market participants are closely monitoring the $2,150 level. A decisive move beyond this threshold would propel ETH into a significant supply zone that has capped prices for approximately 30 days.Should buyers successfully overcome this resistance barrier, blockchain analysts indicate a short squeeze scenario could propel ETH toward $2,800—representing a 40% increase from present valuations.The Relative Strength Index has climbed above its 14-day moving average, generating an early bullish signal on daily timeframes.Regarding potential downside risk, should ETH breach the $1,960 floor, subsequent support zones are located at $1,930 and $1,880. The primary support foundation is positioned near $1,840.Exchange Balances Reach Historic LowsAdditional blockchain data reveals Ethereum balances held on centralized exchanges have decreased to roughly 16 million ETH.ETH on exchanges just hit a multi-year low! 16 million ETH remaining. Down from 23 million in 2023. While price dumped, holders kept withdrawing.Exchange reserves track how much ETH sits on exchanges, ready to sell (see chart).Less reserves = less immediate sell… pic.twitter.com/nI5rN5N3nK— Leon Waidmann (@LeonWaidmann) March 2, 2026This represents a significant decline from the more than 23 million ETH residing on exchanges during early 2023—a reduction of approximately 7 million ETH across nearly three years.This withdrawal pattern is occurring amid price softness, which contradicts typical market behavior. Under normal circumstances, declining valuations incentivize holders to deposit coins onto exchanges in preparation for selling.$ETH is going to $10,000 & NOTHING can stop it.Do you understand? pic.twitter.com/AvGsNdRRfR— Gordon (@GordonGekko) March 2, 2026Conversely, the metrics demonstrate ETH is being allocated toward staking mechanisms, offline storage solutions, and decentralized finance platforms.Reduced exchange inventory translates to decreased ETH availability for immediate liquidation on spot markets.On shorter timeframes, two bullish signals have materialized after ETH rebounded from the $1,900 support zone.The initial signal has already delivered a 2.35x risk-reward outcome. The subsequent signal continues to develop with a 0.6x return at present.Both technical indicators point toward $2,150 as the immediate objective.ETH currently trades above $1,960 while exchange inventory remains at its lowest point in multiple years.The post Ethereum Exchange Holdings Plunge to Record Lows While Bulls Target Major Rally appeared first on Blockonomi.