Ethereum price has outshined Bitcoin in the past few weeks after the approval of spot Ether ETFs in Hong Kong and the United States.
The supply of Ethereum (ETH) on centralized exchanges is currently retesting the six-year low amid the rising underlying value. Ether price against the US dollar has surged more than 32 percent in the last two weeks to trade around $3,890 on Tuesday. However, the latest on-chain data provided by IntoTheBlock shows that Ethereum’s flow into centralized exchanges reached a four-month high on Saturday, with a net flow of more than 140k units.
Essentially, high inflows of Ethereum into centralized exchanges are a sign of increased selling pressure, which could weigh heavily on buyers. Moreover, more investors are speculating on a quick approval of the remaining documents to initiate trading of spot Ether ETFs.
The amount of Ether flowing into exchanges hit the highest point since January!
With a netflow of 140.66k $ETH on saturday, this marks the highest net deposits to exchanges in over 4 months.
High inflows to exchanges are typically a sign of selling behavior, as people either… pic.twitter.com/XAesouv0XR
— IntoTheBlock (@intotheblock) May 28, 2024
Ethereum Rise Signals Approaching Altseason
As Coinspeaker previously reported, the recent rise of Ethereum (ETH), amid ongoing Bitcoin price consolidation, has rejuvenated the calls for an altseason ahead. Already the Bitcoin dominance has broken down on the rising trend and market pundits forecast further declines in the coming months.
Moreover, the ETH/BTC pair on the weekly time chart is on the cusp of a historical reversal of the falling channel in the coming weeks. As a result, more crypto investors have accelerated crypto cash rotation to medium and small-cap altcoins to maximize gains.
The high volatility can be observed in some meme coins led by Pepe (PEPE), Floki Inu (FLOKI), and Turbo (TURBO), among many others that are already in the price discovery phase.
Ideally, more investors could be depositing their Ethereum to centralized exchanges to distribute the recent profits to other potentially profitable trading setups, especially in meme coins.
Midterm Ethereum (ETH) Price Targets
Ethereum price has severally teased to rally beyond $4k without tangible success. However, market pundits are confident that Ethereum’s price against the US dollar will rally toward its all-time high in the next two months. The high demand for Ethereum among institutional investors and retail traders is enough reason to trigger a short squeeze.
From a technical standpoint, if Ethereum (ETH) buyers manage to pump the altcoin consistently above the liquidity zone between $3,946 and $3,987, a rally toward $4,325, which coincides with the daily 3.618 Fibonacci Extension, will be inevitable.
In case the Ether bulls fail to push beyond $3,920 in the coming days, the altcoin will be poised to retrace towards $3,526, which coincides with the 1.618 Fibonacci Extension.
Market Picture
The Ethereum network takes pride in more than $66 billion in total value locked (TVL) and a vibrant web3 ecosystem supported by its interoperability. The recent approval of spot Ether ETFs has solidified the argument that Ethereum is a commodity rather than a security asset.
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