Ethereum is struggling for traction as more ETH moves out of crypto exchanges. However, this could be a sign of an imminent Ethereum bull run if the right factors fall into place.
Looking at the candlestick arrangement in the daily chart, there are pockets of strength, but there ought to be a strong printout for uptrend confirmation.
Overall, ETHUSDT is still stuck inside the bear range of Q3 2024, and bulls need to prove to the markets that they are in charge.
Although the consensus is that ETH is undervalued, not only must prices pull back strongly and breach $3,000, but this expansion ought to have decent engagement.
For now, this is missing.
Until there is a close above the bear range, risk-off traders can stay on the sidelines until there is a clear opportunity to load up.
While ETH price is struggling for momentum, market data points to a possible accumulation.
According to CryptoQuant data
With more coins moving from exchanges like
For now, it can’t be determined what exactly these holders are doing with their coins. They might be holding them on cold wallets like Ledger and Trezor or engaging in DeFi. In these protocols, they maintain control via MetaMask and other non-custodial wallets.
Overall, the more ETH moves from exchanges, the more scarce it becomes, which is a huge positive for buyers.
Technically, ETH has support at around the $2,300 and $2,400 zone.
The same analyst
While ideal, the path to fresh all-time highs, way above March highs, will be shaped by multiple factors.
Top of the list will be how Bitcoin performs. In the last bull cycle that saw BTC breach $70,000, the leg up also formed the base for the ETH price to fly higher. As such, ETH and BTC rallied in the better part of Q4 2023.
If Bitcoin bulls lift off, breaking $74,000, the improving sentiment will also provide tailwinds for altcoins.
Beyond price action, inflows to spot Ethereum ETFs will shape prices. Despite the excitement of the United States SEC approving this derivative product, outflows far exceed inflows, weighing down bulls.
According to
On October 25, there was a daily total net outflow of over $19 million, mostly from Grayscale’s ETHE redemptions.
Institutions didn’t buy any spot Ethereum ETF shares on October 25.
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