Key Points
- Investors began accumulating Ethereum (ETH) as the altcoin’s price fell from $3.4k.
- Ethereum’s NVT ratio indicated that the cryptocurrency was undervalued.
Ethereum, the largest altcoin in the world, reached a new milestone this week, unseen in over a year. This occurred amidst a minor market pullback.
Ethereum’s Remarkable Achievement
IntoTheBlock shared an update revealing that Ethereum experienced a significant increase in outflows last week. Specifically, the outflows exceeded $1 billion, a level not seen since May 2023. Bitcoin also experienced a similar surge in outflows during the same period.
A rise in outflows typically indicates high accumulation. This could be due to Ethereum’s pullback from $3.4k. Data from Hyblock Capital mirrored this, as Ethereum’s buy volume reached 100 on November 12.
This coincided with the day Ethereum’s price began to fall after reaching $3.4k. This suggests investors were buying the dip in anticipation of a short-term price increase.
Positive Momentum for Ethereum
As expected, Ethereum’s price gained bullish momentum after dipping to a support near $3k. Its price rose by nearly 3% in the last 24 hours and was trading at $3,117.03 at the time of writing.
Furthermore, investors seemed inclined to buy Ethereum, indicating its value could rise further. This trend was confirmed by Ethereum’s exchange netflows.
CryptoQuant reported that the token’s net deposits on exchanges were low compared to the 7-day average. Additionally, Ethereum’s Coinbase premium was green, suggesting strong buying sentiment among U.S investors.
Whale activity around Ethereum also remained high. In late October and early November, whale transactions surged, correlating with Ethereum’s bull rally.
Continued Uptrend for Ethereum?
The promising news for investors is that Ethereum may be able to maintain this upward momentum.
The altcoin’s NVT ratio saw a sharp decline over the past two weeks. A drop in this metric signifies an asset is undervalued, hinting at a potential price increase.
Finally, the MA cross technical indicator suggested that Ethereum’s 9-day MA was well above its 21-day MA. If this is accurate, Ethereum could continue its uptrend and soon reach its resistance at $3.38k. However, if Ethereum experiences a pullback and falls below its support at $3k, there is a possibility it could drop to $2.7k.
