Will Bulls Push ETH Price?
Investor interest in Ethereum is growing as it tries to get rid of the current phase of consolidation. On-chain data shows that there is a huge demand for Ethereum, and exchange reserves have dropped sharply. As a result, ETH price is expected to be determined as a reliable support level soon.
Ethereum’s NetFlow drops in amid strong ETF inflow
According to the clearing chart, Ethereum’s volatility has increased in the past 24 hours. Data from Coinglass shows that Ethereum’s total clearing soared by more than $49 million. $30.8 million of that comes from the closure of long-term positions and $18.2 million comes from the seller’s closure of its positions.
This month, Ethereum’s spot ETF attracted a lot of investment, with 145,000 ETH (more than $387 million) flowing into January’s inflow. This surge shows an increasing interest among individual and institutional investors, which suggests that Ethereum is gaining market momentum. If this trend continues, Ethereum may reach key resistance levels soon.
As strong ETF inflows increase demand for Ethereum, the net flow of its exchange is decreasing. Ethereum’s Netflow has dropped to a negative value of $82.4 million, according to Intotheblock data, suggesting investors are withdrawing their holdings from the exchange, which cuts the possibility of sales pressure.
Please read also: Why did Ethereum drop today: Will the next drop of $2,400 be held?
Additionally, centralized exchanges’ ether reserves have reached nearly nine-year lows, increasing investors’ hopes for potential market bottoms, which could pave the way for rallying towards the $3,000 level. On February 18, ETH reserves on all exchanges fell to 18.9 million, the lowest price of Ether since July 2016 was around $14.
The decline in supply on the Ether exchange suggests investors transfer their ETH to refrigerated wallets for long-term preservation. This tendency to move ether away from communication is often seen as a positive signal. This is related to less sales pressure and more stable prices.
What’s next for ETH price?
Ethereum’s price has been climbing, surpassing the key resistance point and is now aiming at $3,000. However, it encountered strong resistance from sellers, which brought challenges to investors. Currently, Ethereum’s price is $2,676, down 3.1% in the past 24 hours.
The trade is close to $3,000 on ETH/USDT, which is a key obstacle. If it stays at this level, it could benefit buyers and potentially push the price toward a January peak of $3,500.
Conversely, if the price stays below the EMA20 line on the 1-hour chart, the seller may drop it to around $2,530 to test the buyer’s patience. If it cannot stay above this level, the price may drop further to retest $2,200.
Meanwhile, the current relative strength index (RSI) is below the midpoint of the 44th level, indicating that it may rise quickly due to continuing to buy interest.
