Ethereum Exchange Outflows
The Ethereum supply at exchanges has reached a new low, indicating that more investors are holding onto their ETH for the long term. According to on-chain data provider Santiment, major exchange wallets are transferring coins to smaller wallets or withdrawing them from exchanges altogether. In the past 24 hours, around 240,000 ETH has been shifted from these large wallets, representing a decrease of 2.99% in the amount of coins held.
Anticipating a Shift
Crypto analyst Michael van de Poppe suggests that altcoins are showing strength, but it may not be a definitive trend yet. He predicts a money flow from Bitcoin to Ethereum in the coming weeks, potentially leading to a strong performance by altcoins in Q1 2024 and coinciding with a peak in Bitcoin dominance.
ETH Price Action
Ethereum recently attempted a rally and the $2100 level is seen as crucial support. Short-term pullbacks are expected to find support around this area. If there’s a breakdown below $2100, the 50-Day EMA is anticipated to provide substantial support. Traders are eyeing the $2500 level as a potential target, with the $2700 level coming into focus. However, a breakdown below the 50-Day EMA could have negative implications for Ethereum. Changes in interest rates, particularly in the US and other bond markets, may also impact the crypto market.
Hot Take: Ethereum Gears Up for Upside Move
After retesting the $2,100 level, Ethereum is preparing for an upward move. The current price is $2,200 with a market cap of $264 billion. Despite price volatility, Ethereum’s supply at exchanges has decreased, indicating more investors are holding onto their ETH. Analysts anticipate a shift from Bitcoin to Ethereum in the coming weeks, potentially leading to a strong performance by altcoins. Traders are closely watching the $2,100 support level and targeting $2,500 and $2,700 as potential price levels. However, a breakdown below the 50-Day EMA and changes in interest rates could have negative implications for Ethereum.
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