Over the past 24 hours, Ethereum [ETH] has experienced a slight drop in its value, but technical analysis indicates a potential shift towards bullishness in the short term.
Despite recent instances of selling off, data on its exchange netflow reveals a prevalent trend of withdrawals rather than deposits, suggesting a growing interest in buying and a decrease in selling pressure.
Performance of Ethereum and Technical Indicators
At the time of writing, Ethereum was valued at $2,637.22, reflecting a 1.44% decrease in the short term. The 50-day moving average (yellow line) currently stands at $2,527.92 on the daily chart, while the 200-day moving average (blue line) is higher at $3,125.39.
Trading above the 50-day moving average indicates a momentary bullish trend, although remaining below the 200-day moving average suggests a prevailing bearish trend in the broader context.
The Parabolic SAR indicator further supports this near-term bullish stance, with dots positioned below the price line. This configuration signifies the sustainability of the current upward trend and the dominance of buyers in the market at present.
While Ethereum demonstrates strength in the short term, it encounters significant resistance from the 200-day moving average, potentially impeding a prolonged breakout.
Rise in the Number of Profitable Ethereum Holders
Despite the recent decline, previous surges in Ethereum’s value earlier in the week positively impacted the profits of its investors. Based on insights from the Global In/Out of the Money chart, the proportion of holders in profit with ETH increased from 59% to 68%.
This equates to over 83 million addresses currently holding ETH at a profit.
Conversely, 29.47% of addresses, equivalent to 36.17 million, currently find themselves “Out of the Money,” signifying a loss. Around 2.38%, or 2.93 million addresses, are at a breakeven point.
Exchange Netflow: Outflows Taking the Lead
The exchange netflow of Ethereum has seen fluctuations between inflows and outflows over the past week. However, the overarching trend indicates a higher volume of ETH exiting exchanges, signaling a prevailing trend of outflows over inflows.
This sustained negative net flow is noteworthy, especially in light of recent sell-off events by retail investors and institutions earlier in the week.
At the latest trading session closure, Ethereum’s netflow exhibited a negative balance of over 28,000 ETH, underscoring the dominance of outflows. This pattern of ETH being withdrawn from exchanges suggests that investors could be holding onto their assets, potentially reducing the likelihood of immediate sell-offs.
Summary
Ethereum currently finds itself in a fluctuating market scenario highlighted by short-term bullish momentum, trading above the 50-day moving average, and experiencing increased outflows from exchanges.
Nevertheless, the formidable resistance presented by the 200-day moving average poses a challenge to sustained bullish trends in the long run.
Moreover, the uptick in profitable holders indicates a renewed sense of confidence among investors despite the recent downward price movement.