Ethereum’s price has been looking strong lately, making investors cautiously optimistic. It briefly touched almost $4,700 last week – close to its record high of $4,878 from 2021 – before dipping slightly to around $4,633. Even with this small drop, it’s still up about 30% in the last month!
Exchange Data Shows Reduced Selling
Analysts are watching exchange data closely to understand what’s happening. One analyst looked at Ethereum’s netflow – basically, whether more ETH is going onto or off of exchanges. This helps gauge selling pressure.
The data suggests people are moving ETH off exchanges. Historically, big movements of ETH 
onto exchanges often happen right before price drops, as people prepare to sell. The opposite is also true: lots of ETH leaving exchanges usually happens before price increases.
The analyst explained that this current outflow trend is similar to what happened before major price increases in 2017, 2021, and even earlier this year. This reduced selling pressure points towards continued growth for Ethereum. While short-term dips are still possible, the overall picture suggests a strong potential for long-term growth.
Institutional Interest and Technical Analysis
Ethereum’s good performance is also showing up in other ways. Technically, it’s finally outperforming Bitcoin after years of lagging behind. This is a big deal, suggesting Ethereum could become even more popular.
Plus, institutional investors (like big funds) are also getting more involved, holding onto their Ethereum even when the market gets shaky. All this adds up to a pretty bullish picture for Ethereum.
