- Ethereum’s price resilience and key resistance levels indicate the potential for an impending breakout.
- Strong outflows, a positive MACD and dominant long positions indicate a supportive bullish setup.
Ethereum [ETH] has again attracted attention because there is a significant excess of the daily net outflow 25 millionwhich leads all other blockchains in capital movement. Such a large-scale shift could indicate profit-taking or strategic repositioning by major investors.
With ETH trading at $2,618.54, up 3.32% at the time of writing, this trend begs the question: can these outflows consolidate liquidity and fuel a new bullish wave? Let’s take a closer look at the technical features and market indicators behind Ethereum’s current price dynamics.
ETH Price Analysis: Building to a Breakout?
Ethereum’s recent price movements suggest a breakout may be in the making. ETH has maintained its strength above $2,500, an important psychological support, despite market fluctuations.
This level has proven resilient and could act as a launching pad for stronger upside momentum.
Looking ahead, $2,772 serves as the immediate resistance level, while $3,521.41 represents a more significant barrier that could confirm or halt the bullish momentum.
If Ethereum successfully reaches these levels, we could witness a sharp rally. However, if resistance holds, ETH could enter a consolidation phase, waiting for a decisive catalyst.
Source: TradingView
MACD and RSI indicate strengthening momentum
Ethereum’s technical indicators further highlight the potential for upside. The Moving Average Convergence Divergence (MACD) indicator is showing bullish signs as the MACD line has crossed the signal line, which is often seen as a precursor to positive price action.
Moreover, the Relative Strength Index (RSI) is currently around 54.33, a moderately bullish level.
Therefore, Ethereum has significant room for upside momentum before approaching the overbought situation, signaling that buyers can still drive prices higher in the short term.
Source: TradingView
Large outflows from stock markets: a sign of bullish sentiment?
Ethereum’s net flow data shows a significant outflow of 4.5K ETH in the last 24 hours, representing a 3.03% drop in available exchange liquidity.
When large amounts of ETH disappear from exchanges, it often indicates that investors are choosing to hold their assets for the long term or deploy them elsewhere, reducing immediate selling pressure.
Source: CryptoQuant
ETH liquidation data highlights the dominance of longs
Ethereum’s liquidation data supports a bullish narrative. The majority of liquidations concern short positions, while long positions dominate the scene. This trend signals confidence among traders in Ethereum’s upside potential as long holders expect continued gains.
Consequently, this confidence among long positions could create further upward pressure, providing the support needed for a sustained rally.
Source: Coinglass
Read Ethereum’s [ETH] Price forecast 2024–2025
Ethereum’s significant outflows from the exchanges, coupled with the supportive technical indicators, point to a potential bullish continuation.
Breaking through key resistance levels could be the final trigger for a strong rally. Ethereum appears well positioned for a rise as liquidity consolidates, making the coming days crucial for ETH’s price action.
