ETH Market Faces Pullback While Exchange Reserves Decline and SharpLink Buys More

Ethereum price was rejected at $4,085, confirming a short-term correction and active pressure.

Exchange reserves declined suggesting reduced sell pressure and stronger long-term holder confidence.

SharpLink increased holdings to 859,853 ETH, worth $3.5B,institutional interest and growing staking are increasing rewards over time.

Ethereum (ETH) gained 1.08% in 24 hours,and is trading at $4,077.31. Despite recent pullbacks, strong volume and institutional activity are fueling optimism across the market .

TD Sequential and Fibonacci Levels Signal Correction Phase

Ethereum shows a rejection at the $4,085 level, marked by a TD Sequential “9” sell signal that accurately predicted the recent pullback. ETH has since closed five consecutive bearish candles, confirming downward pressure.

Source: Ali Charts Via X

Price dropped below the critical 0.618 Fibonacci level at $3,921 and continued selling.This could expose Ethereum to deeper corrections toward $3,823 or $3,764.

The TD Sequential shows a red “5” candle, indicating the current trend may not yet be exhausted. A bounce of renewed bullish interest would change short-term direction and hinge the price behavior near key Fibonacci levels.

Holders Shift ETH Away from Centralized Platforms

Ethereum exchange reserves declined from 27 million ETH in early 2023 to 15.9 million by late 2025. This sharp decline trend shows reduced selling pressure as holders move assets off exchanges.

Source: CryptoRand Via X

An inverse correlation between reserve levels and price performance remains visibleWhenever reserves fell, ETH climbed from below .This trend reflects growing investor preference for long-term storage or participation in decentralized finance.

Exchange reserves held steady despite periods of volatility in mid-2024 and early 2025 . A clear indication that short-term price swings were driven by market sentiment rather than a spike in sell-side liquidity.

Institutions Strengthen Positions as Ethereum Market Cap Climbs

Minnesota-based SharpLink Gaming added 19,271 ETH at $3,892, increasing its total holdings to 859,853 ETH, worth approximately $3.5 billion. This comes as Ethereum’s market cap rebounded near $490 billion following a brief dip below $445 billion.

Trading volume remained stable throughout the week but surged during the October 21 rally. This volume boost supported the recovery, reflecting stronger buying interest. Market cap is now nearing historical highs, suggesting sustained macro-level accumulation.

SharpLink also reported 5,671 ETH earned in staking rewards. With Ethereum reserves shrinking and institutional players adding exposure, Ethereum price action may be setting up for a broader move.

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