Recent statistics from blockchain analytics start-up IntoTheBlock on Ethereum, the second-largest cryptocurrency by market value, reveal a surprising reality.
IntoTheBlock routinely provides Ethereum and Bitcoin network statistics toward the week’s close, as it did today.
According to its tweet, $906 million ETH exited exchanges this week, marking the eighth week of net outflows for the second-largest cryptocurrency asset. According to a graphic shared, total fees for the ETH network increased by 43.56% to $108.3 million.
$906M of $ETH left exchanges this week, making it the eighth consecutive week of net outflows for the second-largest crypto asset pic.twitter.com/v7VuqFUSCf
— IntoTheBlock (@intotheblock) March 1, 2024
Ethereum has seen a significant wave of outflows from exchanges in recent weeks, demonstrating optimistic sentiment among investors. This suggests that more ETH is moving out of exchanges than into them, implying that investors are holding onto their coins by moving them to cold storage rather than selling them.
Outflows of ETH from exchanges may signal a positive outlook for the price of the cryptocurrency, as it implies lower selling pressure and higher scarcity. Ethereum has gained 105% in one year, reaching a high of $3521 on Feb. 29.
ETH price action
On Feb. 25, Ethereum broke above the $3,030 resistance, signaling the start of the next leg of the uptrend. The rally gained traction, with highs of $3,521 reached in Thursday’s trading session.
The upward-sloping moving averages show that bulls are in control, but the RSI’s overbought zone suggests that a slight pullback or consolidation is probable. At the time of writing, ETH was down 1.05% in the last 24 hours to $3,447.
That being stated, the first indication of weakness will be a break and close below 2,823. This suggests aggressive profit booking by traders. ETH could then fall to $2,717, and then to the daily MA 50 of $2,617.
On the other hand, ETH might target the $4,000 level next if a sustained close above the current $3,521 barrier is achieved
