Ethereum investors are dropping ETH like hotcakes. Over the past week, a staggering $1.8 billion in ETH has been yanked off exchanges, according to IntoTheBlock. This was the biggest outflow since December 2022. When whales start moving large amounts into cold storage, it’s often a sign they’re betting on higher prices ahead. But is this just another head fake, or are we looking at a turning point?
Data from CryptoQuant paints a similar picture. The 30-day moving average of exchange net flows just hit its lowest level since late 2022—a time when Ethereum was gearing up for a major rally. Could history be repeating itself?
A Bullish Reversal Pattern Emerges, But One Key Level Matters
Despite ETH’s brutal 51% decline over the past 83 days, technical signals are flashing green. Mikybull, a technical analyst, pointed to a rare diamond price pattern, a formation that often signals an explosive move. If Ethereum follows the script, a 20% rally could be in the cards, pushing ETH back toward $2,600.
Adding fuel to the fire, Ethereum’s MVRV ratio—a metric comparing market price to the average price at which all ETH last moved—has dropped to 0.8, a classic signal of an oversold market. The last time this happened in October 2023, Ethereum went from the bargain bin straight into a bull run.
Ethereum Fights to Reclaim Key Support or Faces Deeper Losses
For all the bullish hints, Ethereum has one big hurdle—it just closed below the 200-day EMA, a level that has acted as a launchpad for past rallies. If ETH can claw its way back above this line, bulls might just take the reins. But if it lingers in the danger zone for too long, the market could be in for a longer stretch of sideways action.
At the time of writing, Ethereum is sitting at $2,011.76.
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