Over $605 million worth of Ether exited exchanges during the weekend, potentially supporting price stability as ETH trades below the $2,850 resistance level.
By Anisha Pandey
Updated
3 mins read
While the Ether price ETH $1 933 24h volatility: 4.9% Market cap: $233.13 B Vol. 24h: $14.24 B was trading below its crucial support, a large number of ETH were moved off major exchanges during the weekend. The move, indicative of long-term investor confidence, underscores a shift toward holding rather than selling the cryptocurrency.
As per the data by market intelligence platform Santiment, between February 8 and 9, exchanges saw an exit of around 224,410 Ether (ETH), worth over $605 million, marking the largest single-day outflow in 23 months. Such exchange outflows typically reduce the supply available for sale, decreasing the chances of major sell-offs and supporting price stability.
Interestingly, data from CryptoQuant reveals that the exchange supply ratio for Ether has dropped to its record lows, currently sitting at 0.137.
Currently trading around $2,714 with a market capitalization of $327 billion, ETH has gained roughly 3% in the past 24 hours, according to CoinMarketCap. While price struggles have persisted recently, this shift in market sentiment is seen as a potential turning point.
Meanwhile, the Accumulation/Distribution (A/D) indicator on the daily Ether price chart also suggests positive momentum. A rising A/D line, currently showing an accumulation of around 132.62 million units, suggests sustained interest from investors despite recent price volatility.
Additionally, the Bollinger Bands (BB) on the daily chart indicate that Ether 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.
Ether 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, as noted by crypto analyst Ali Martinez, with $6 billion added to the market over the past week, add to this optimism.
Conversely, a failure to maintain support at $2,660 could trigger bearish pressure, pushing ETH toward the $2,500 zone. Notably, the taker buy-sell ratio suggests that selling sentiment is still dominant in the derivatives market.
Looking at historical cycles, analysts believe Q1 2025 could be important for Ethereum. In previous cycles, notably in 2017 and 2021, ETH 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, Ether 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.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
