Is an Ethereum Bull Run on the Horizon Exchanges Witness 35 Billion ETH Outflow
Key Takeaways
– Ethereum’s exchange reserves have decreased from $42 billion to approximately $38.5 billion, suggesting a possible accumulation of the cryptocurrency.
– ETH has the potential to increase by 12% and reach the resistance level of $2,800.
– Currently, 57.76% of top traders have opened long positions, while 42.24% have opened short positions.
Ethereum (ETH), the second-largest cryptocurrency by market cap, is displaying bullish behavior and is expected to experience a significant upward rally due to positive price action and favorable on-chain metrics. Furthermore, large investors and whales have recently withdrawn a substantial amount of ETH from exchanges.
Decrease in Ethereum Exchange Reserves
According to CryptoQuant, an on-chain analytics firm, Ethereum’s exchange reserves have dropped from $42 billion to around $38.5 billion, representing a decrease of approximately $3.5 billion. This significant decline in exchange reserves indicates a potential accumulation or acquisition of ETH by large investors or whales.
Additionally, this decrease in exchange reserves has occurred near a strong support area where ETH is currently being traded.
Technical Analysis of Ethereum and Upcoming Levels
Expert technical analysis suggests that ETH is displaying bullish behavior as it follows a bullish channel pattern and forms higher highs and higher lows. At present, ETH is near the lower boundary of the pattern, forming a higher low.
Based on historical data and price corrections, there is a strong possibility that the asset could experience a 12% increase and reach the resistance level of $2,800 in the coming days. This resistance level also coincides with the 200-day Exponential Moving Average (EMA) and the upper boundary of the bullish pattern.
However, for this bullish scenario to hold, ETH must remain above the $2,400 level; otherwise, it may fail.
Bullish On-Chain Metrics
The positive outlook for ETH is further supported by on-chain metrics. According to on-chain analytics firm Coinglass, ETH’s long/short ratio stands at 1.36 over the past four hours, indicating strong bullish sentiment among traders. During the same period, 57.76% of top traders have opened long positions, while 42.24% have opened short positions.
ETH’s open interest has increased by 4.9% over the past 24 hours and 3.1% over the past four hours. This rise in open interest suggests growing interest from traders in the asset, leading to the formation of new positions.
When considering the bullish on-chain metrics alongside the technical analysis, it becomes apparent that bulls are currently dominating the asset and may continue to support it in the upcoming rally.
Current Price Momentum
Currently, ETH is trading around the $2,520 level and has experienced a 1.20% increase in value over the past 24 hours. During this period, trading volume has also risen by 90%, indicating heightened participation from traders and investors in anticipation of a potential upward rally.
Tags
Crypto news
Ethereum
Price Analysis