Over 1 million Ethereum tokens leave exchanges as investors grow confident of new uptrend to $3,000

  • A massive exodus of Ethereum tokens from exchanges last week is a bullish signal.
  • Holders of Ethereum prefer to hold rather than sell at a profit in anticipation of a bull run to $3,000.
  • The TD Sequential indicator's sell signal on the 4-hour chart brings to light the increasing bearish pressure.

Ethereum recently rebounded from critical support at $1,000 and hit a new all-time high of around $1,477 (Coinbase).  The spike in the price occurred despite a snarl-up in Bitcoin price recovery following the drop under $30,000.

Meanwhile, Ether is trading above $1,300 amid the bulls' push to resume the uptrend eying $3,000 in the medium-term. According to Glassnode, holders withdrew ETH in large numbers. This suggested that the decision to hold is in anticipation of another significant liftoff.

Ethereum exchange withdrawals soar as bullish outlook improves

On-chain metrics provided by Glassnode show that Ethereum had large amounts of exchange withdrawals in the previous week. Roughly 1 million Ether left the exchanges amid improving investor sentiment for holding long term.

An exodus of tokens from exchanges is usually a bullish signal for a cryptoasset. Therefore, as investor confidence shoots up, it is likely that Ethereum will resume the uptrend in the near term.

Ethereum exchange withdrawals

Ethereum exchange withdrawals

Ethereum must defend this crucial support to sustain the uptrend

ETH is settling slightly above the 50 Simple Moving Average on the 4-hour chart. The buyer congestion at $1,300 has reinforced this support. Realize that Ether must defend this level at all costs to sustain the uptrend in the short term.

However, it is essential to realize that short-term analysis seems bearish, especially if support at the 50 SMA caves. The short term losses could retest the support at $1,272 before resuming the uptrend (4-hour chart).

A bounce from this support may see Ethereum complete the leg to new record highs. An increase in buying pressure, boosted by the desire to hold, could see Ethereum hit price levels around $3,000.

ETH/USD 4-hour chart

ETH/USD price chart

Looking at the other side of the fence

The TD Sequential indicator recently presented a sell signal on the 4-hour chart. The call to sell took the form of a green nine candlestick. If the overhead pressure continues, Ethereum may overshoot the support at $1,272 and revisit the anchor at the 100 SMA.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Prediction: BTC set to retest $56,000

Bitcoin price is heading lower following a break below a critical support trend line. The leading cryptocurrency is now exposed to a downside target of $56,568. The BTC IOMAP model suggests that the bellwether cryptocurrency is unlikely to drop below $56,000.

More Bitcoin news

Chainlink price faces minor sell-off before resuming uptrend

Chainlink price is witnessing its uptrend retreat following a technical signal that indicates the token has reached its local top. LINK is headed lower to retest critical support levels as the bears target $28.61 next. The token may fall toward the lower boundary of ...

More ChainLink news

SafeMoon price prepares to escape from prevailing downtrend with 60% ascent

SafeMoon has been locked in a downtrend since May 23, with little ambition to reverse the period of sluggish performance. While it's trapped in the prevailing consolidation chart pattern, an escape above $0.00000288 could spell trouble for the bears.

More SafeMoon news

XRP price on the cusp of massive decline if this critical support level fails to hold

XRP price is trapped within a recent downtrend as the momentum has flipped to the downside. Ripple lagged behind while other cryptocurrencies, including Bitcoin and Ethereum, recently witnessed rallies reaching new all-time highs. 

More Ripple news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast