- ETH remains in a strong bull trend, around 56, according to its RSI.
- The price fell by 0.73% in the last trading session.
Ethereum [ETH] has shown a slight decline over the past 24 hours, but technical indicators suggest a bullish shift could take place in the near term.
Despite the recent sell-off, the exchanges’ net flow shows a dominance of outflows, indicating that more ETH has been withdrawn from the exchanges than deposited, indicating potential buying interest and reduced selling pressure.
Ethereum’s price action and technical indicators
Ethereum was trading at $2,637.22 at the time of writing, reflecting a short-term decline of 1.44%. On the daily chart, the 50-day moving average (yellow) is at $2,527.92, while the 200-day moving average (blue) remains higher at $3,125.39.
ETH trading above the 50-day moving average indicates near-term bullish momentum. However, the price remains well below the 200-day moving average, indicating that the broader long-term trend is still bearish.
Source: TradingView
The Parabolic SAR indicator also supports this short-term bullish outlook, with dots below the price. This indicates that the current uptrend remains intact and buyers are still in control of the market for the time being.
While Ethereum is showing signs of strength in the short term, it is facing strong resistance from the 200-day moving average, which could prevent a breakout in the longer term.
Increasing Number of Ethereum Holders in Profit
Despite the recent decline, Ethereum’s earlier rally this week had a significant impact on the profitability of its holders. According to data from the Globally in/out of money In the graph, the percentage of ETH holders with profits increased from 59% to 68%.
This translates to over 83 million addresses now holding ETH at a profit.
On the other hand, 29.47% of addresses, equivalent to 36.17 million, are currently ‘Out of the Money’, meaning they are making losses. About 2.38%, or 2.93 million addresses, are breaking even.
Alternating current: the outflow dominates
Ethereum’s net flow has fluctuated between inflows and outflows over the past week. However, the overall trend shows a greater volume of ETH leaving the exchanges, indicating greater outflows than inflows.
This net negative flow is significant, especially given the retail investor and institutional sell-off events earlier this week.
Source: CryptoQuant
At the end of the last trading session, the net flow of ETH was over 28,000 ETH negative, highlighting the dominance of the outflow. This trend of ETH being delisted from exchanges suggests that investors may be holding on to their coins, reducing the likelihood of an immediate sell-off.
Read Ethereum (ETH) Price Prediction 2024-25
Conclusion
Ethereum is currently navigating a mixed market with near-term bullish momentum as it trades above its 50-day moving average and experiences greater outflows from exchanges.
However, the significant resistance provided by the 200-day moving average remains a hurdle to long-term bullish trends.
Moreover, the increase in the number of profitable holders indicates renewed confidence among investors, despite the recent price decline.
Credit : ambcrypto.com
