Despite the ongoing bearish sentiment across the cryptocurrency market, Ethereum (ETH) has managed to retain significant interest from crypto investors. A recent report from leading on-chain analytics firm, Coinglass, indicates that whales, institutional investors, and long-term holders have been steadily accumulating the token.
According to the data, exchanges worldwide have seen an outflow of ETH tokens worth approximately $200 million. A notable outflow of such magnitude, particularly during a period of bearish market sentiment, suggests potential accumulation which could trigger heavy buying pressure and potentially provoke an upside rally.
However, it’s important to note that this significant exchange exodus commenced when the altcoin failed to sustain its bullish price action pattern, as observed in the daily time frame.
At present, Ether is trading near the $2,945 mark, reflecting a price drop of over 8.90% in the past 24 hours. Despite this downturn and the prevailing market sentiment, traders and investors have shown robust confidence in the token, leading to a remarkable 90% surge in trading volume.
This is the first instance ETH has slipped below the $3,000 threshold since Donald Trump, known for his pro-crypto stance, won the presidential election. Given the current price range, Ether appears to be an attractive buy. This perspective is reinforced by Trump’s World Liberty’s substantial and consistent investment in ETH when it was trading near the $3,400 mark.
In terms of price predictions, expert technical analysis suggests that with the recent significant price drop, ETH has landed near its robust support area of $2,800.
Based on current price behavior, if Ether can maintain a level above $2,800, there’s a strong likelihood it could surge by 30%, potentially reaching the $3,850 mark in the future. However, if it fails to hold this support level and closes a daily candle below $2,800, a price drop of 20% could be witnessed, falling to the next support at the $2,250 level.
At present, the bearish market sentiment has thrust ETH into a downtrend, with the token trading below the 200 Exponential Moving Average (EMA) on the daily time frame. This information is crucial for investors in understanding the current market dynamics and potential future price action of ETH.
