ETH
Ethereum Seeing High Exchange Outflows, But Watch Out For This Bearish Signal
On-chain data shows Ethereum has been observing high exchange outflows recently, but a development related to Tether (USDT) may be a bearish obstacle for the market.
Ethereum And Tether Both Have Seen Withdrawals From Exchanges Recently
As explained by the on-chain analytics firm Santiment in a new post on X, the market is ending July on a mixed note in terms of the exchange flows. The metric of interest here is the “Exchange Flow Balance,” which measures the net amount of a given asset that’s entering into or exiting the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the inflows to these platforms are outweighing the outflows right now. Such a trend implies there is currently demand for trading away the asset among the investors.
Related Reading
On the other hand, the indicator being negative implies the holders are making net withdrawals from the exchanges, potentially holding onto their coins in the long term.
What implications either of these trends would have on the wider market depends on the exact type of cryptocurrency the one in question is: stablecoin or volatile asset. In the context of the current topic, Santiment has cited the data for Ethereum and Tether, which means both types of coins are relevant here.
Below is the chart shared by the analytics firm that shows the trend in the Exchange Flow Balance for the two assets over the past few months:
As displayed in the above graph, the Exchange Flow Balance has recently observed a sharp negative spike for both Ethereum and Tether recently, implying that investors have been taking large amounts of these coins off into self-custody.
For volatile assets, trading the asset away can have a negative effect on its price, so the exchange reserve going up can be a bearish sign. The Exchange Flow Balance being negative, on the contrary, can be bullish, as it implies the potential “sell supply” of the coin is decreasing.
During the latest outflow spree, investors have withdrawn 80,763 ETH (almost $268 million) from these platforms, which is the largest outflow spike in five months. Thus, Ethereum has seen its sell supply go through a significant decline.
In the case of stablecoins, exchange inflows also mean the investors want to swap the asset, but as these tokens have their value “stable” around the $1 mark by definition, such trades have no effect on their price.
This doesn’t mean that they aren’t of any consequence to the market, however, as investors usually use stables to buy a volatile asset like Ethereum, so large exchange inflows of a stablecoin like Tether can be bullish for these other coins.
Related Reading
In this view, the exchange reserve of USDT and other stables can be considered as a potential “buy supply” for the volatile cryptocurrencies. Recently, USDT has seen net withdrawals of $346 million, meaning that this buy supply has gone down.
“This reflects less buying power for future purchases from traders, which is generally a necessary ingredient needed to boost prices in the long run,” notes Santiment. It now remains to be seen how the Ethereum price will develop in the near future, given that both bullish and bearish developments have simultaneously occurred in the market.
ETH Price
At the time of writing, Ethereum is trading at around $3,300, down more than 3% over the past week.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Source link
With the crypto market again buzzing, there are questions about whether the Ethereum price can reach $5,000 this year, a price level that would mark a new all-time high for the crypto. However, ETH reaching $5,000 depends on some factors, which will be explored in this article.
Will Ethereum Price Reach $5,000 This Year
From a fundamental analysis perspective, several events and happenings support the ETH price reaching $5,000 this year. For instance, Ethereum’s co-founder Vitalik Buterin recently outlined a roadmap for key technical improvements to the network. Vitalik proposes lowering the staking requirement to one ETH.
This will allow greater participation in the Ethereum network and make it more decentralized. Such development is also bullish for the Ethereum price as it will increase the number of ETH tokens staked, potentially leading to a supply shock as more coins get removed from circulation.
Another factor that supports a price surge to $5,000 this year is that Ethereum whales are still bullish on ETH. Santiment data shows that these whales control over 44% of the crypto’s supply. This indicates that these investors anticipate that the ETH price will rise significantly in this market cycle.
IntoTheBlock data also shows that these whales have been actively accumulating ETH even when the price remained tepid. The large holders’ netflow has surged by almost 50% in the last seven days, indicating that whales are withdrawing more ETH from exchanges than they are depositing. Withdrawals from exchanges suggest they are looking to hold for the long term.
On the other hand, it is worth mentioning a couple of fundamentals that paint a bearish picture for Ethereum and could prevent the ETH price from reaching $5,000 this year. One is that other networks are currently stealing mindshare from Ethereum. For instance, SOL recently overtook ETH in weekly and daily DEX volumes.
Ethereum has thrived as the home of decentralized finance (DeFi). However, its dominance in the DeFi space is at risk, with networks like Solana on its heels. Ethereum potentially losing its dominance to Solana will ultimately lead to a decline in ETH’s utility.
The Spot Ethereum ETFs are also currently bearish for the Ethereum price as they continue to witness significant outflows. On October 15, they saw $12.7 million in net outflows despite the crypto market rallying on the day.
This indicates the outflows these funds have witnessed before now weren’t necessarily because of the market conditions but more likely because institutional investors haven’t warmed up to ETH as they did with Bitcoin. SoSoValue data shows that the Spot Ethereum ETFs have witnessed $554 million in net outflows since they launched in July.
From A Technical Analysis Perspective
Crypto analysts like Mikybull Crypto have predicted that the Ethereum price can reach $5,000 and even surpass it. Mikybull Crypto recently stated that ETH’s run to $6,000 will kick off soon as the crypto’s price is about to break out. However, his accompanying chart suggested that the rise to $5,000 and then $6,000 might not happen this year.
Crypto analyst Ali Martinez also recently predicted that the Ethereum price could rally to $5,000 and then $6,000. He noted that every bounce of this channel’s lower boundary has historically led to an average 130% price increase for Ethereum.
The analyst added that if the pattern holds, ETH could rally to $6,000 if the key $2,300 support level stays intact. However, his accompanying chart showed that the rise to $6,000 is unlikely this year. Crypto influencer Poseidon believes the Ethereum price surge will be the “most hated rally” when it happens.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
Ethereum price surged 6.5% during the U.S. trading session on Monday, currently trading at $2,630. Amid the broader market uptick, the sharp recovery could be linked to the launch of Australia’s first Ethereum spot ETF (IETH) on the Chicago Board Options Exchange (Cboe). The rising ETH price poised to recover the loss from the late-September sell-off, indicates the potential for a prolonged upswing.
Australia’s First ETH Spot ETF Boost Ethereum Price to $2500
While the spot Ethereum ETFs are struggling to drive sufficient demand in the U.S. Market, Monochrome Asset Management is set to launch Australia’s first Ethereum spot ETF (IETH) on Cboe.
The ETF will start trading on Monday and will be the first to offer physical Ethereum subscriptions and redemptions, marking an innovative setup in Ethereum-based financial products. Monochrome previously launched Australia’s first Bitcoin spot ETF (IBTC) in June.
The new development highlights Australia’s efforts and institutional acceptance of cryptocurrency assets. Today, the Ethereum price surged by over 6.5%, reclaiming the $2,500 psychological level.
Vitalik Buterin Proposes Ethereum PoS Upgrades
Vitalik Buterin, Ethereum’s co-founder, has recently proposed key improvements for Ethereum’s Proof of Stake (PoS) mechanism. His vision revolves around two key ideas. First, the introduction of single-slot finality aims to confirm blocks in a single slot rather than multiple slots finality.
This shift will enhance Ethereum’s transaction throughput and security, streamlining the network’s overall performance.
Second, Vitalik advocates democratizing staking by lowering the Ethereum staking requirement’s barrier to 1 ETH. Doing so will open up Ethereum staking to a wide range of audiences, which could further secure the network through increased decentralization.
Galaxy Digital Moves 13,580 ETH to Major Exchanges
According to lookonchain analytics, a GalaxyDigital OTC wallet has recently transferred 13,580 ETH (worth approximately $34.3M) to three major cryptocurrency exchanges: Coinbase, OKX, and Binance.
The heavy movement of assets into exchange could trigger an initial volatility in Ethereum price or drive selling pressure.
A #GalaxyDigital OTC wallet deposited 13,580 $ETH($34.3M) to #Coinbase, #OKX and #Binance in the past 14 hours.https://t.co/zlZMEpxj7r pic.twitter.com/cqfAUw9RRy
— Lookonchain (@lookonchain) October 14, 2024
ETH Supply Held by Whales Grows to 44.4%
As per Santiment data, the ETH supply held by top addressive has steadily grown to 44.4%. This steady accumulation by large holders accentuates their growing confidence and anticipation of further price growth.
In addition, whale transactions involving more than 100,000 ETH have remained consistent, hovering around 1,520. Moreover, this stable level of high-value transactions indicates that large investors actively participate in the market.
ETH Poised for Breakout as Triangle Pattern Nears Conclusion
Over the past two months, the Ethereum price prediction showcased a sideways action resonating within the triangle pattern. The two converging trendlines drive a current consolidation, allowing buyers to recuperate from the bullish momentum.
With a high momentum rally, the ETH price is poised to breach the pattern’s overhead trendline. If the breakout holds the asset, the post-breakout rally could target $3 .5, followed by $4,100.
However, if dynamic resistance remains intact the potential reversal in Ethereum price could prolong the consolidation trend
Frequently Asked Questions (FAQs)
The recent surge in Ethereum’s price, which rose by 6.5%, is attributed to the launch of Australia’s first Ethereum spot ETF (IETH) by Monochrome Asset Management on Cboe
Galaxy Digital recently transferred 13,580 ETH, worth approximately $34.3M, to Coinbase, OKX, and Binance. This large movement of assets into exchanges could cause price volatility
According to Santiment data, the supply of ETH held by top addresses has grown to 44.4%. This steady accumulation by large holders suggests growing confidence in Ethereum’s future price appreciation
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
A top crypto strategist known for making timely Bitcoin calls is outlining a price level where he thinks BTC’s eight-month consolidation could come to a close.
Pseudonymous analyst DonAlt tells his 589,100 followers on the social media platform X that he believes Bitcoin will gather more bullish momentum if it clears a crucial resistance area.
The trader also notes that it would be healthy for BTC to retest its immediate support before moving higher.
“>$65,000 and I’d wager we’ve finally escaped the endless chop
<$58,000 and sadness awaits
>$61,700 is a good first step towards $65,000 being broken
I’m hopeful we’ll go up after all this chop has ended.”
At time of writing, Bitcoin is trading for $62,663.
DonAlt is also keeping a close watch on the top smart contract protocol Ethereum (ETH). According to the analyst, ETH appears to be forming an ascending triangle pattern – a bullish reversal structure if an asset takes out its horizontal resistance.
“I shall name it the triangle of cope.”
In a video update, DonAlt says that ETH will start to look bullish if it soars above its horizontal resistance.
“Above $2,700 is already enough, like above $2,700 ETH starts looking really attractive. If not, even $2,500 if you want to be really, really aggressive.”
At time of writing, Ethereum is worth $2,458.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Source link
ETH, WBNB, USDC Stolen as Radiant Capital Suffers $50M Loss
Crypto scammer hit with 20-year prison sentence for role in fraud
Top Analyst Says Monster Breakout Underway for One Memecoin, Says Six Altcoins Are His Fastest Horse Picks
Thailand Bank SCB Unveils New Stablecoin Remittance Solution
Elizabeth Warren Proves Democrats Are Still Against Bitcoin
Radiant Capital exploited for $50m on Arbitrum, BSC
Prada Reveals Futuristic Spacesuit for NASA’s Next Moon Landing
Is $5000 Ethereum Price Possible In 2024?
SHINOBI: Gaza is the most powerful demonstration of bitcoin since Wikileaks
Analysts forecast 3 altcoins set for double-digit gains in Q4 2024
How Crypto Investors Are Bracing for Volatility and What It Means for Bitcoin’s Future
Standard Chartered-Backed Zodia Custody Launches Wallet, Partners Galaxy Digital
Bitcoin’s False Dichotomy between SoV and MoE
Crypto expert tips Flockerz as the next 100x meme coin
Polkadot (DOT) Gearing Up For ‘Massive Breakout’, Will It Skyrocket To $20?
182267361726451435
Top Crypto News Headlines of The Week
Bitcoin Open-Source Development Takes The Stage In Nashville
Ethereum, Solana touch key levels as Bitcoin spikes
New U.S. president must bring clarity to crypto regulation, analyst says
Bitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
Why Did Trump Change His Mind on Bitcoin?
Ethereum Crash A Buying Opportunity? This Whale Thinks So
Will XRP Price Defend $0.5 Support If SEC Decides to Appeal?
Shiba Inu Price Slips 4% as 3500% Burn Rate Surge Fails to Halt Correction
Citigroup Executive Steps Down To Explore Crypto
‘Hamster Kombat’ Airdrop Delayed as Pre-Market Trading for Telegram Game Expands
Mostbet Güvenilir Mi – Casino Bonus 2024
Bitcoin flashes indicator that often precedes higher prices: CryptoQuant
Crypto Market Movers: 5 Altcoins Making Waves This Bull Run
1 month ago182267361726451435
24/7 Cryptocurrency News2 months agoTop Crypto News Headlines of The Week
Opinion3 months agoBitcoin Open-Source Development Takes The Stage In Nashville
Bitcoin3 months agoEthereum, Solana touch key levels as Bitcoin spikes
News1 month agoNew U.S. president must bring clarity to crypto regulation, analyst says
Bitcoin3 months agoBitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
Donald Trump3 months agoWhy Did Trump Change His Mind on Bitcoin?
Altcoins2 months agoEthereum Crash A Buying Opportunity? This Whale Thinks So
✓ Share: