Ethereum [ETH], the leading altcoin globally, achieved a significant milestone this week, reaching a peak that had not been seen in over a year. Interestingly, this occurred amidst a minor pullback in the market overall.
Could this recent development alter the outlook in favor of ETH once again?
Ethereum Reaches a Significant Achievement!
Recent data from IntoTheBlock highlighted a noteworthy update. It was revealed that Ethereum experienced a substantial increase in outflows the previous week, surpassing $1 billion, a level last witnessed in May 2023. The data also indicated a similar surge in outflows for Bitcoin [BTC] during the same period.
An uptick in outflows typically indicates a high level of accumulation. This surge could be attributed to ETH’s pullback from $3.4k. Hyblock Capital’s data also echoed this narrative, with ETH’s buy volume reaching 100 on November 12.
This coincided with the day when ETH’s price began to decline after hitting $3.4k, signaling that investors were considering buying the dip in anticipation of a potential price increase in the short term.
Indeed, this forecast materialized over the past few days. After dropping to a support level around $3k, ETH saw a bullish uptrend. Its price rose by almost 3% in the last 24 hours, currently trading at $3,117.03.
Furthermore, investor interest in acquiring Ethereum indicated a potential further surge in its value. This sustained buying trend was also evident from ETH’s exchange netflows.
As per CryptoQuant, the token exhibited low net deposits on exchanges compared to the 7-day average. Additionally, ETH’s Coinbase premium remained positive, highlighting strong buying sentiment among U.S. investors.
Besides, significant whale activity around ETH persisted. Notably, CryptoCrypto previously reported a surge in whale transactions towards late October and early November, correlating with ETH’s bullish run.
Can this Upward Trend Maintain Itself?
Encouragingly, Ethereum might be able to sustain this newfound upward momentum.
The NVT ratio for the top altcoin witnessed a substantial decrease over the past fortnight. A decline in this metric indicates undervaluation of the asset, hinting at a potential near-term price surge.
Furthermore, the MA cross technical indicator indicated that Ethereum’s 9-day MA remained comfortably above its 21-day MA.
If this indicator is reliable, ETH could prolong its upward trajectory and potentially reach a resistance level at $3.38k. Nevertheless, a pullback leading ETH below the $3k support could expose it to a potential drop to $2.7k.