Readers in the crypto industry will find today’s analysis of Ethereum (ETH) particularly intriguing. On June 11, a significant amount of 542,000 ETH was moved out of exchanges, marking the largest outflow of the year. This movement raised eyebrows and sparked discussions about the potential delay in ETH reaching $4,000.
However, the trend quickly shifted, with data from CryptoQuant indicating a decrease in the number of ETH withdrawn from exchanges. The figures from June 12 showed a nearly 50% drop compared to the previous day. Currently, BeInCrypto reports that 70,839 ETH has left the top exchanges. Exchange outflow refers to the total amount of coins transferred from exchanges to cold wallets or self-custody, which can impact selling pressure on assets. In the case of Ethereum, a low exchange outflow could lead to a period of consolidation.
Moreover, an increase in exchange inflow may result in a significant decrease in prices, as it signifies more coins being sent to exchanges, putting selling pressure on the price. Conversely, a decrease in exchange inflow could mitigate the chances of a major price drop.
At the time of writing, Ethereum is trading at $3,494, down from its recent peak of $3,881. The Taker Sell Ratio for ETH stands at 0.52, indicating a notable presence of bears in the market. A value above 0.50 suggests dominance by sellers, while a reading below 0.50 indicates less selling sentiment reaching its peak.
Looking at the ETH/USD Daily chart reveals a double-top formation with a ceiling at $3,885, hinting at a bearish reversal pattern. The support level at $3,665 has been breached, and if the bearish trend continues without bullish intervention, ETH could drop to $3,317 – a critical support level to watch.
Furthermore, the Awesome Oscillator (AO) reading has dipped to 65.10 with red histogram bars, indicating a downward momentum. The 0.382 Fibonacci Retracement Indicator points to $3,317 as a potential reversal level to monitor closely.
It’s worth noting that the recently approved Ethereum spot ETFs could impact these predictions. If these ETFs start trading live with significant volume, ETH might mimic Bitcoin’s response to a similar development in Q1 2024, potentially leading to a bounce in price with a target of $4,162.
