Key Points
- Ethereum’s [ETH] price has slightly declined but technical indicators suggest potential short-term bullish shift.
- Despite recent sell-offs, Ethereum’s exchange netflow shows more outflows than inflows, signaling potential buying interest.
Ethereum’s [ETH] price has experienced a minor drop in the past 24 hours. However, technical indicators hint at a possible short-term bullish trend.
Despite the recent sell-offs, Ethereum’s exchange netflow is dominated by outflows. This suggests that more ETH has been withdrawn from exchanges than deposited, indicating potential buying interest and less selling pressure.
Ethereum’s Price Action and Technical Indicators
At the time of reporting, Ethereum was trading at $2,637.22, reflecting a 1.44% short-term decline. The 50-day moving average stands at $2,527.92, while the 200-day moving average is higher at $3,125.39.
ETH trading above the 50-day moving average indicates short-term bullish momentum. However, it is still significantly below the 200-day moving average, suggesting a longer-term bearish trend.
The Parabolic SAR indicator also supports this short-term bullish outlook, with dots positioned below the price. This suggests that the current uptrend is intact and buyers are still in control of the market.
Despite Ethereum’s short-term strength, it faces strong resistance from the 200-day moving average, which could hinder a longer-term breakout.
Increasing Number of Ethereum Holders in Profit
Despite the recent decline, Ethereum’s earlier rally this week positively impacted its holders’ profitability. Data from the Global In/Out of the Money chart shows that the percentage of ETH holders in profit increased from 59% to 68%.
This means that over 83 million addresses are now holding ETH at a profit. Conversely, 29.47% of the addresses, equivalent to 36.17 million, are currently holding at a loss. Approximately 2.38%, or 2.93 million addresses, are breaking even.
Ethereum’s exchange netflow has been fluctuating between inflows and outflows throughout the past week. However, the overall trend shows a higher volume of ETH leaving exchanges, indicating more outflow than inflow.
This net negative flow is noteworthy, particularly in light of the sell-off events by retail investors and institutions earlier in the week. At the end of the last trading session, ETH’s netflow was negative by over 28,000 ETH, emphasizing the outflow dominance.
This trend of ETH being moved off exchanges suggests that investors might be holding onto their coins, reducing the potential for immediate sell-offs.
Ethereum is currently navigating a mixed market with short-term bullish momentum as it trades above the 50-day moving average and experiences increased outflows from exchanges.
However, the significant resistance posed by the 200-day moving average remains a hurdle for long-term bullish trends. Additionally, the increase in profitable holders signals renewed confidence among investors despite the recent dip in price.