Over the past 24 hours, Ethereum [ETH] has observed a slight decrease in value, but technical signals indicate a possible short-term shift towards a more positive market sentiment.
Despite recent instances of selling, data on its exchange netflow reveals a predominance of withdrawals over deposits, hinting at growing interest in buying and a reduction in selling pressure.
Price Performance and Technical Signals for Ethereum
At the time of writing, Ethereum was priced at $2,637.22, showing a decline of 1.44% in the short run. On the daily chart, the 50-day moving average (in yellow) is positioned at $2,527.92, while the 200-day moving average (in blue) stands higher at $3,125.39.
Trading above the 50-day moving average points to a short-term bullish trend, although staying below the 200-day moving average indicates a prevailing bearish sentiment for the broader, long-term outlook.
The Parabolic SAR indicator enhances this short-term bullish view, with dots positioned beneath the price action, affirming the current uptrend’s strength and the prevailing control of buyers in the market.
While Ethereum exhibits strength in the short term, it encounters formidable resistance from the 200-day moving average, possibly acting as a barrier to a sustained upward trend.
Rise in Number of Profitable Ethereum Holders
Despite the recent setback, the previous surge in Ethereum’s value this week had a notable impact on the profitability of its holders. Data sourced from the Global In/Out of the Money chart indicates a rise in the percentage of ETH holders in profit from 59% to 68%.
This translates to more than 83 million wallets currently holding ETH at a profit.
Conversely, approximately 29.47% of the addresses, totaling 36.17 million, are currently experiencing losses. Around 2.38%, equivalent to 2.93 million addresses, are at a breakeven point.
Exchange Netflow: Outflows in the Lead
Ethereum’s exchange netflow has witnessed fluctuations between inflows and outflows over the previous week. Nevertheless, the overall trend leans towards a higher volume of ETH exiting exchanges, indicating a surplus in outflow compared to inflow.
This net negative flow holds significance, particularly in light of recent instances of selling by retail investors and institutions earlier in the week.
By the end of the latest trading period, ETH’s netflow exhibited a negative balance of over 28,000 ETH, underlining the dominance of outflows. The consistent movement of ETH off exchanges points towards investors potentially holding onto their assets, thereby diminishing the likelihood of immediate selling pressures.
Concluding Remarks
Presently, Ethereum is traversing a market characterized by mixed dynamics, with a short-term bullish trend above the 50-day moving average and a trend of increased outflows from exchanges.
Nevertheless, the substantial hurdle posed by the 200-day moving average acts as a barrier to sustained bullish movements over the long term.
Furthermore, the uptick in the number of profitable holders signifies growing confidence among investors, despite the recent downturn in price.