Ethereum Price Analysis: The cryptocurrency market entered March with a surge in volatility as the Bitcoin price rally halted at $64000. A minor shift to sideways action has also impacted major coins like Ethereum, XRP, SOL, and BNB each wavering below their respective resistance. However, the massive inflow of capital in spot BTC ETFs which was one of the key reasons for the recent uptrend is still intact.
As per recent highlights from Lookonchain on March 1st, Grayscale (GBTC) reduced its Bitcoin holdings by 3,606 BTC ($223M), while eight spot BTC ETFs, collectively added 10,999 BTC ($680M) to their portfolios. Blackrock alone accounted for 9,730 BTC ($601M) of this increase, showcasing a significant institutional shift toward Bitcoin investment.
Mar 1 Update:#Grayscale decreased 3,606 $BTC($223M).
8 ETFs added 10,999 $BTC($680M), of which #Blackrock added 9,730 $BTC($601M).https://t.co/38Tqp3p9D5 pic.twitter.com/8awhagxEJi
— Lookonchain (@lookonchain) March 1, 2024
Also Read: Crypto Prices Today: Bitcoin At 62K, Ethereum Above $3400 As SHIB & PEPE Surge Over 50%
Investors Pull $906M Worth of Ethereum Off Exchanges in Vote of Confidence
A look at the daily time frame chart shows the Ethereum price has witnessed intense buying pressure since the second week of February. From a local support of $2268, the coin price surged 51% to current trade at $3426.
This bull run can be attributed to collective events such as increasing inflow into BTC ETF, the steady progress in Ethereum’s hardfork upgrade Dencun, and positive sentiment around Spot ETH ETFs.
In a recent observation by the analytical tool IntoTheBlock, Ethereum (ETH) has seen a notable trend of withdrawal from exchanges, with $906 million worth of ETH leaving exchanges this past week. This marks the eighth consecutive week of net outflows for the second-largest cryptocurrency by market capitalization.
$906M of $ETH left exchanges this week, making it the eighth consecutive week of net outflows for the second-largest crypto asset pic.twitter.com/v7VuqFUSCf
— IntoTheBlock (@intotheblock) March 1, 2024
The sustained movement of ETH away from exchanges could indicate a growing trend of long-term holding among investors or a decrease in selling pressure.
Also Read: Crypto Prices Today: Bitcoin At 61K, Ethereum Drops To 3300 As Solana & XRP Gain
Is Ethereum Price Poised For a New Correction?
Currently trading at $3425, the Ethereum price witnessed a surge in supply pressure at $3524 evidenced by the daily candle with long rejection wicks. If the supply pressure persists, the coin price will revert to 5% to retest the breached trendline of the expanding channel pattern.
Sustaining this support will provide ETH buyers a suitable foothold to prolong the current recovery to $3924, followed by $4235.
Technical Indicator
- Exponential Moving Average: The fast-moving 20-day EMA may act as a first line of defense for buyers.
- Relative Strength Index: The daily RSI(80%) slope rising at the overbought region indicates the ETH price might need a minor pullback region bullish momentum.
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