Key Points
- Ethereum experiences largest exchange outflow in nearly two years, indicating long-term investor confidence.
- Despite recent price struggles, market sentiment shows potential turning point for Ethereum.
The price of Ethereum was trading below its crucial support, with a large number of Ethereum being moved off major exchanges during the weekend. This move indicates long-term investor confidence, showing a shift towards holding rather than selling the cryptocurrency.
According to data from market intelligence platform Santiment, between February 8 and 9, exchanges experienced an exit of around 224,410 Ethereum, worth over $605 million. This marks the largest single-day outflow in 23 months. Such exchange outflows typically decrease the supply available for sale, reducing the chances of major sell-offs and supporting price stability.
Ethereum’s Market Situation
Data from CryptoQuant reveals that the exchange supply ratio for Ethereum has dropped to its record lows, currently sitting at 0.137.
At present, Ethereum is trading around $2,714 with a market capitalization of $327 billion. Ethereum has gained approximately 3% in the past 24 hours, according to CoinMarketCap. Despite recent price struggles, this shift in market sentiment is seen as a potential turning point.
Ethereum’s Price Momentum
The Accumulation/Distribution (A/D) indicator on the daily Ethereum price chart also suggests positive momentum. A rising A/D line, currently showing an accumulation of around 132.62 million units, indicates sustained interest from investors despite recent price volatility.
Moreover, the Bollinger Bands (BB) on the daily chart indicate that Ethereum’s price is holding the lower band and is moving closer to the middle band. This suggests increased volatility and a potential breakout in case of strong buying pressure.
Ethereum’s price could rally toward $2,975 if buying interest persists and breaks the $2,850 resistance level. Beyond this, $3,050 becomes the next key target. Renewed capital inflows, with $6 billion added to the market over the past week, add to this optimism.
However, a failure to maintain support at $2,660 could trigger bearish pressure, pushing Ethereum toward the $2,500 zone. Notably, the taker buy-sell ratio suggests that selling sentiment is still dominant in the derivatives market.
Historical Trends
Analysts believe that Q1 2025 could be significant for Ethereum based on historical cycles. In previous cycles, notably in 2017 and 2021, Ethereum achieved its best quarterly performance between January and April. With a similar market setup unfolding, investors remain optimistic about the asset’s potential.
On the daily chart, Ethereum is forming a consolidation pattern between $2,500 and $2,850. This range-bound movement suggests a breakout may be imminent, depending on overall market sentiment and trading volumes.
