Ethereum has shown a 3% increase in the last 24 hours, indicating positive market sentiment. The cryptocurrency experienced a low of $2150 and a high of $2891 over the past week due to extreme volatility.
Sustained Uptrend
In the last three days, Ethereum has seen a steady uptrend from $2,633 to $2,850. Before this rise, Ethereum was on a downward trajectory, falling by 11.06% on weekly charts and 22.61% on monthly charts. The trend reversal with three consecutive days of gains indicates a shift in market sentiment from bearish to bullish. This bullishness is supported by the significant negative netflows of Ethereum.
Negative Netflows
CryptoQuant reports that Ethereum’s Exchange Netflow for derivative exchanges has seen a decline of nearly -60k ETH for the second time in a week. These large negative netflows suggest that investors are actively withdrawing ETH from derivative exchanges. Negative netflows imply that traders are accumulating, with outflows exceeding inflows. This significant drop historically indicates reduced selling pressure from large positions being closed, suggesting bullish sentiments in the medium term. This market behavior suggests traders have turned bullish and expect ETH prices to recover.
ETH's Chart Indications
The shift in market sentiment suggested by Ethereum’s netflow is evident across the charts. Ethereum’s Buyer-Taker-Sell Ratio has surged and surpassed 1 over the past two days to settle at 1.06, indicating more traders are buying ETH than selling. This buying activity is particularly prevalent in the U.S. market, with the Coinbase premium index turning positive. After remaining negative, traders on Coinbase are accumulating ETH after the recent dip. This bullishness is seen across other exchanges as well, as evidenced by the declining supply ratio. The supply ratio has dropped to a yearly low of 0.13, implying that more ETH is being withdrawn from exchanges than inflowing, in higher numbers than seen over the past year.
With market sentiments turning bullish, Ethereum is well-positioned for a sustained recovery. This is evidenced by Ethereum’s Stoch RSI making a bullish crossover over the past day, suggesting that ETH is experiencing sustained upward momentum. The altcoin’s RSI has surged from 31 to 37, while its Moving Average (MA) was 41. The RSI is nearing another bullish crossover. A crossover here will validate the uptrend, with Ethereum set to make further gains. If these favorable conditions on Ethereum’s price charts continue, Ethereum could reclaim the $3,000 mark. If this level is breached, the altcoin could attempt a run to $3,300, where it faces significant resistance. However, if bulls fail to maintain control of the market and macroeconomic developments turn unfavorable amidst heightened volatility over the past week, it could drop to $2,720. A breach below this level could push it down to $2,563.
