Key Points
- Ethereum’s inflow/outflow data shows $35.6 million worth of outflows from cryptocurrency exchanges.
- 76% of top traders on Binance are holding long positions on Ethereum.
Ethereum Draws Attention of Whales and Investors
Ethereum [ETH], the second-largest cryptocurrency in the world, has been attracting the attention of large-scale investors and traders due to its intriguing price action.
Ethereum’s Technical Analysis
According to technical analysis, Ethereum is nearing a significant resistance level that it has struggled to break through in the past. Historically, Ethereum has reached this level four times and each time it has encountered selling pressure leading to a substantial price drop. This pattern could be the reason behind the increased activity from large-scale investors and traders.
If Ethereum manages to break through this resistance level and close a daily candle above $4,100, it could potentially rise by 18% and reach $4,850 in the upcoming days. Currently, Ethereum is trading above the 200-day Exponential Moving Average (EMA) on the daily timeframe, which indicates an upward trend.
Positive On-chain Metrics
The overall market sentiment appears to be positive as Bitcoin [BTC] has reclaimed $100,000, and other cryptocurrencies continue to rally. This sentiment seems to be supporting Ethereum’s potential rally. Large-scale investors and traders have shown strong interest in Ethereum, according to data from Coinglass.
Coinglass’s Ethereum Spot Inflow/Outflow data reveals that cryptocurrency exchanges have seen significant Ethereum outflows amounting to $35.6 million. In the world of cryptocurrency, “outflow” refers to the transfer of assets from exchanges to wallet addresses. These metrics suggest potential upward momentum, an ideal buying opportunity, and a reduced chance of selling pressure.
Traders Betting on Long Positions
In addition to large-scale investor participation, traders also appear to be expressing confidence in Ethereum. Coinglass’s Ethereum Long/Short ratio on Binance is currently at 3.17, indicating strong bullish sentiment among traders. At present, 76% of top traders on Binance are holding long positions on Ethereum, while 24% hold short positions.
Combining these on-chain metrics, it appears that bulls are dominating the asset. This could help Ethereum break through one of its strongest resistance levels.
As of the latest update, Ethereum is trading near $3,990, with a price increase of over 3.10% in the past 24 hours. However, during the same period, its trading volume has decreased by 9%, indicating less participation from traders and investors compared to the previous day.
