- A massive exodus of Ethereum tokens from exchanges last week is a bullish signal.
- Holders of Ethereum prefer to hold rather than sell at a profit in anticipation of a bull run to $3,000.
- The TD Sequential indicator's sell signal on the 4-hour chart brings to light the increasing bearish pressure.
Ethereum recently rebounded from critical support at $1,000 and hit a new all-time high of around $1,477 (Coinbase). The spike in the price occurred despite a snarl-up in Bitcoin price recovery following the drop under $30,000.
Meanwhile, Ether is trading above $1,300 amid the bulls' push to resume the uptrend eying $3,000 in the medium-term. According to Glassnode, holders withdrew ETH in large numbers. This suggested that the decision to hold is in anticipation of another significant liftoff.
Ethereum exchange withdrawals soar as bullish outlook improves
On-chain metrics provided by Glassnode show that Ethereum had large amounts of exchange withdrawals in the previous week. Roughly 1 million Ether left the exchanges amid improving investor sentiment for holding long term.
An exodus of tokens from exchanges is usually a bullish signal for a cryptoasset. Therefore, as investor confidence shoots up, it is likely that Ethereum will resume the uptrend in the near term.
Ethereum exchange withdrawals
Ethereum must defend this crucial support to sustain the uptrend
ETH is settling slightly above the 50 Simple Moving Average on the 4-hour chart. The buyer congestion at $1,300 has reinforced this support. Realize that Ether must defend this level at all costs to sustain the uptrend in the short term.
However, it is essential to realize that short-term analysis seems bearish, especially if support at the 50 SMA caves. The short term losses could retest the support at $1,272 before resuming the uptrend (4-hour chart).
A bounce from this support may see Ethereum complete the leg to new record highs. An increase in buying pressure, boosted by the desire to hold, could see Ethereum hit price levels around $3,000.
ETH/USD price chart
Looking at the other side of the fence
The TD Sequential indicator recently presented a sell signal on the 4-hour chart. The call to sell took the form of a green nine candlestick. If the overhead pressure continues, Ethereum may overshoot the support at $1,272 and revisit the anchor at the 100 SMA.
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
Bitcoin Weekly Forecast: Slow but positive start
Bitcoin edges slightly lower, trading around $96,500 on Friday after an over 2.5% recovery this week, with historical data showing modest average January returns of 3.35%. On-chain metrics suggest the bull market remains intact, indicating a cooling-off phase rather than a cycle peak.
Stellar bulls aim for double-digit rally ahead
Stellar extends its gains, trading above $0.45 on Friday after rallying more than 32% this week. On-chain data indicates further rally as XLM’s Open Interest and Total Value Locked rise. Additionally, the technical outlook suggests a rally continuation projection of further 40% gains.
BTC, ETH and XRP eyes for a rally
Bitcoin’s price finds support around its key level, while Ethereum’s price is approaching its key resistance level; a firm close above it would signal a bullish trend. Ripple price trades within a symmetrical triangle on Friday, a breakout from which could signal a rally ahead.
Could XRP surge to new highs in January 2025? First two days of trading suggest an upside bias
Ripple's XRP is up 7% on Thursday, extending its rally that began during the New Year's Day celebration. If long-term holders (LTH) continue their recent accumulation, XRP could overcome the $2.9 resistance level and aim for a new all-time high.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.