Key Points
- Ethereum saw its highest exchange outflows in 2024, indicating a bullish sentiment among investors.
- Despite bullish indications, ETH’s price may face resistance at $3,255 in the short term.
On April 18, 2024, Ethereum (ETH) recorded its highest exchange outflows for the year.
This event saw 143,000 ETH being withdrawn from platforms, according to data from CryptoQuant.
Outflows and Price Movement
Exchange outflows are typically seen as a sign that investors are unwilling to sell, which could mean the altcoin might avoid a severe drop in value.
The last time ETH experienced such high outflows was on February 7 and March 26.
Following the February outflow, ETH’s price rose from $2,372 to $3,386 by the end of the month.
However, the March outflow did not yield the same results as the price fell later.
Factors Influencing Outflows
Various factors could have contributed to the increase in outflows.
One potential reason is the anticipation that the U.S. SEC would approve Ethereum ETFs by May.
This viewpoint was shared by Burakkesmeci, an author on CryptoQuant, who noted a significant amount of Bitcoin (BTC) leaving exchanges before the Bitcoin spot ETF approval.
Another possible reason for the rise in outflows is the belief that ETH’s price will outperform BTC in this cycle.
Despite these optimistic signs, the Long Term Holder — Net Unrealized Profit/Loss (LTH-NUPL) metric, which shows the behavior of holders who have held the cryptocurrency for at least 155 days, was in the optimistic (yellow) region, indicating a cautious optimism among long-term holders.
At the time of writing, ETH was trading at $3,175, a 3.67% increase in the last 24 hours.
However, the 20 Exponential Moving Average (EMA) was above the 50 EMA, indicating a bearish trend.
The Supertrend also flashed a sell signal at $3,255, suggesting that if ETH’s price continues to rise, it may face resistance at this level.
The Money Flow Index (MFI) also showed a bearish sign, indicating that capital was flowing out from the ETH market.
This could mean that the price might struggle to break through the resistance at $3,500.
