Ethereum price today: $2,510
- Ethereum exchange reserve has plunged by 300,000 ETH, indicating bullish sentiment among on-chain traders.
- Ethereum ETFs paint an opposite view with $35 million in outflows.
- Ethereum could rally to $2,707 if prices cross above the 200-day, 100-day and 50-day SMAs convergence.
Ethereum (ETH) reclaimed the $2,500 psychological level, recording nearly a 1% gain on Monday. The top altcoin is showing signs of a potential rally following increased exchange withdrawal among investors. However, negative flows in Ethereum exchange-traded funds (ETF) could affect its price growth chances.
Ethereum's on-chain activity and ETF flows indicate mixed investor sentiment
Ethereum investors have withdrawn about 300,000 ETH, valued at approximately $760 million, from exchanges in the past week, according to CryptoQuant's data.
ETH Exchange Reserve (Source: CryptoQuant)
It appeared investors leveraged ETH's price decline last week as a buy-the-dip opportunity.
Most of these outflows potentially flowed into staking protocols as the total amount staked grew by nearly 130,000 ETH within the same period.
Total ETH Staked (Source: CryptoQuant)
While ETH's on-chain picture paints a bullish outlook, ETH ETF flows indicate that traditional investors do not share this notion.
Ethereum ETFs saw the largest outflow among digital assets last week, recording $35 million in negative flows, per CoinShares data. This is in stark contrast to Bitcoin and Solana ETFs, which posted net inflows of $920 million and $10.8 million last week, respectively.
Meanwhile, RD InnoTech, a participant of the Hong Kong Monetary Authority's Stablecoin Issuer Sandbox, plans to launch a Hong Kong Dollar Stablecoin (HKDR) on the Ethereum network, per Wu Blockchain.
Ethereum Price Forecast: ETH could tackle the $2,707 level if it crosses above SMA convergence
Ethereum is trading around $2,510, down 0.6% on the day, after sustaining $13.51 million in liquidations. Long and short liquidations accounted for $4.34 million and $9.17 million, respectively.
ETH is consolidating within a key rectangular channel with resistance at $2,594 and support at $2,395. The top altcoin is also attempting to cross above the convergence of its 200-day, 100-day and 50-day Simple Moving Averages (SMA).
ETH/USDT 4-hour chart
A successful move above these SMAs could see ETH flip the $2,594 resistance into a support level and tackle the $2,707 key level.
The Relative Strength Index (RSI) momentum indicator is at its midpoint, indicating neutral investor sentiment.
A daily candlestick close below $2,395 will invalidate the thesis.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.