$1.2 Billion in Ethereum Pulled from Central Exchanges – Indication of Robust Accumulation
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The market environment has shifted positively, showcasing a range of potential opportunities.
Ethereum is regaining traction after hitting the $2,739 mark, achieving a new local high not witnessed since late February. This resurgence indicates a robust recovery for ETH, which faced considerable challenges earlier this year. Currently, bullish sentiment seems to dominate as the wider cryptocurrency market begins to rally and investments flow back into altcoins.
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Market analysts are predicting the possibility of an altcoin season, spurred by Ethereum’s strength against Bitcoin and increasing investor confidence. While Bitcoin stabilizes near its all-time highs, Ethereum seizes the opportunity to excel, breaking through essential resistance levels with determination.
Further supporting this outlook, recent data highlights that $1.2 billion in Ethereum has been withdrawn from centralized exchanges in the last week. This ongoing trend of outflows suggests a sustained accumulation phase and diminished selling pressure, indicating potential for long-term bullish trajectories.
As market activity intensifies and investor sentiment shifts, Ethereum may be on the verge of a significant breakout. Should the bullish trend continue, the $3,000 to $3,100 range might be tested soon as the next substantial resistance level. The focus is firmly on ETH as altcoins start to show renewed vigor.
Ethereum Gains Traction Amid Exchange Withdrawals Indicating Accumulation
With Ethereum trading above crucial thresholds, speculation around a lasting rally is gathering pace. Following a period of muted performance, ETH has surged over 50% in value since last week. This impressive upward movement reignites interest in an altcoin season, with many analysts viewing Ethereum’s advancement as a possible catalyst for strength across the broader altcoin landscape.
Ethereum is now sustaining its position above the $2,600 level, a point that endured as strong resistance for several months. This upward trend, along with rising momentum against Bitcoin, suggests that bullish forces are resurgent. Traders are keenly observing the next significant resistance range between $2,900 and $3,100, which could act as a critical benchmark for Ethereum’s ascent.
Moreover, data indicates that $1.2 billion in Ethereum has been withdrawn from centralized exchanges in the past week. This trend has accelerated since early May, suggesting increased accumulation by investors and reduced selling pressure. Significant withdrawals from exchanges often signify that holders intend to keep ETH off the market, decreasing immediate availability and supporting upward price movement.
As bullish sentiment permeates the market and Ethereum takes the lead, attention is now on whether ETH can sustain its momentum and propel the altcoin market into a new growth cycle. If accumulation trends persist and bullish forces maintain critical levels, Ethereum could be on a trajectory toward $3,100, potentially sparking a wider market rally.
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Price Action Overview: ETH Approaching Key Levels
Ethereum’s weekly chart reveals a significant breakout following an extended bearish phase, with ETH trading around $2,599.14. The recent increase has surpassed both the 200-week EMA ($2,259.65) and the 200-week SMA ($2,451.55), both essential long-term indicators of trend direction. Reclaiming these price points signifies renewed bullish momentum and a substantial sentiment shift.
The breakout candle represents one of the largest weekly green candles observed in over a year, signaling a surge in buyer activity and possibly indicating a critical reversal point following months of decline. This move propels ETH to levels not seen since February, with the week’s local high peaking at $2,739.05.
Volume has notably risen during this rally, confirming the robustness of the upward movement. However, Ethereum is now encountering resistance near the $2,800–$2,900 range, which acted as previous support in early 2024 before the subsequent decline. If bullish momentum continues and this week closes above $2,600, further advances toward the $3,100 resistance area could become feasible.
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On the downside, keep an eye on the significant support level around $2,450, which coincides with the 200-week SMA. A failure to sustain this level could lead to a retest of $2,250. The trend remains bullish for now, but follow-through performance in the upcoming week will be crucial.
Image sourced from Dall-E, chart from TradingView
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