Ethereum’s price has been struggling lately, but some key indicators suggest a bullish outlook. Despite recent market wobbles, investor confidence in ETH seems to be growing.
Accumulation is Key
On-chain data reveals a fascinating trend: Ethereum’s Cost Basis Distribution (CBD) is falling. Normally, a falling CBD suggests increased selling pressure. But in this case, it’s telling a different story. It means investors are buying ETH at lower prices, accumulating it rather than selling off.
This accumulation is significant. Data shows massive buys around the $2,632 and $3,149 price points – over 786,660 ETH and 1.2 million ETH respectively. This isn’t just a few whales; it’s widespread buying. Investors are averaging down, suggesting long-term faith in Ethereum’s potential. This trend mirrors what’s happening with Maker (MKR).
ETH Exiting Exchanges
Adding to the bullish signals, a huge amount of ETH is leaving cryptocurrency exchanges. This outflow, one of the largest ever recorded, points towards less selling pressure and potentially, a price surge. Crypto experts are noticing this, interpreting it as a sign that investors are preparing for a price increase.
Technical Analysis: A Potential Breakout?
Technical analysts are also seeing positive signs. One expert points to a massive “Ascending Triangle” pattern on the weekly chart, suggesting a potential breakout to new all-time highs. Ethereum is holding strong above key support levels, setting the stage for a possible rally towards $3,200, $4,000, $4,850, $6,000, and even $7,500.
The Bottom Line
While the price is still below $2,800, the combination of accumulation, exchange outflows, and positive technical analysis paints a picture of growing confidence in Ethereum. A significant price rally might be on the horizon.
