1. Ethereum Sees Major Accumulation and Exchange Outflows
Ethereum’s recent on-chain data reveals a major trend toward long-term holding, with over $750 million worth of ETH removed from exchanges last week. This withdrawal aligns with an ongoing accumulation trend, which has seen a 65% increase in ETH held by long-term investors since early 2024. Analysts suggest this reduction in exchange liquidity is a bullish signal, often indicating confidence in Ethereum’s future as holders reduce short-term selling pressure and focus on staking opportunities
2. Impact of Upcoming Network Upgrades
Ethereum’s network upgrades remain a key point of focus, with developments aimed at improving transaction efficiency and reducing gas fees. The anticipated “Dencun” upgrade, incorporating Proto-Danksharding (EIP-4844), is set to lower transaction costs on Layer-2 rollups, increasing the network’s appeal for decentralized finance (DeFi) and NFTs. These upgrades are expected to further Ethereum’s competitive edge, making it more accessible to users and increasing utility in DeFi (Cryptonews), (IXFI Research).
3. Technical Analysis: Key Support and Resistance Levels
In the last 12 hours, ETH has traded around $2,615, holding above a crucial support level near $2,600. Indicators suggest a balanced market, with oscillators like the RSI remaining neutral. Should ETH maintain its current momentum, it could test resistance near $2,750. Breaking above this level would signal a bullish trend, potentially pushing ETH toward $3,000. Conversely, if support weakens, ETH could face a decline to around $2,500. Analysts are closely watching these levels, especially as accumulation trends strengthen ETH’s price stability (Cryptonews).
Conclusion: Ethereum’s Path Forward
Ethereum’s recent accumulation trend and focus on network upgrades position it as a promising asset for both short-term growth and long-term stability. While market conditions remain neutral, the potential for a rally exists as investor confidence builds. Stakeholders will be closely monitoring Ethereum’s support and resistance levels, with an eye on potential breakthroughs driven by upcoming improvements in network efficiency.
