ETH price appears poised for further upside as on-chain data shows investors are withdrawing record amounts from exchanges.
Summary
- Despite failing to break into the $4800 level on two tries, ETH price continues forming higher lows, keeping the uptrend intact.
- Exchange Flux Balance for ETH has turned negative for the first time in history, indicating strong accumulation.
Ethereum (ETH) price has recently faced another rejection at the $4,800 level, despite briefly peaking at $4,957 on Sunday. However, ETH continues to form higher lows, currently consolidating above the $4,200 horizontal support and staying firmly above the previous higher low at $4,060, which keeps the uptrend market structure intact.
On the technical side, bulls are maintaining price action above the 20-day EMA, with the 7-day EMA positioned above the 20-day EMA, signaling sustained short-term bullish momentum. If bulls manage to push ETH price above the psychological $4500 level and then the horizontal $4,800 resistance, ETH price could potentially retest the recent high near $5,000 and rise beyond.
Source: TradingView
You might also like: Synthetix (SNX) price risks 10% drop as technicals flag bearish signs
Why ETH price is poised for further upside
According to Joao Wedson, Founder & CEO of Alphractal, the Exchange Flux Balance for ETH has just turned negative for the first time in its history. The Exchange Flux Balance tracks the cumulative netflow of an asset across all exchanges over time, summing up daily inflows and outflows.
A negative reading indicates that more Ethereum is being withdrawn from exchanges than deposited, signaling that investors are moving their holdings into private wallets for long-term storage rather than keeping them on exchanges for potential selling.
Source: @joao_wedson
You might also like: Boerse Stuttgart launches first pan-European blockchain settlement platform
