Large amounts of Ethereum (ETH) withdrawn from exchanges: Is a rise coming?

With the withdrawal of 361,000 Ethereum (ETH) from the exchanges, bullish signals increased.

The price of Ethereum (ETH) has increased by more than 7% in the last seven days. However, the movements of large investors (whales) continue to remain cautious.

From a technical standpoint, the EMA lines are in an uptrend pattern, indicating that momentum may continue. If the uptrend continues, ETH can sustain its upward movement; however, if the trend weakens, critical support levels may be tested.

The biggest increase since May 30th

The net transfer volume of ETH to exchanges reached positive values on October 29th and 35,000 ETH was transferred to exchanges. This is usually a sign of selling pressure; as investors transferring their assets to exchanges may indicate their preparation for selling. Increasing supply on exchanges can typically create short-term selling pressure on price.

However, the overall outlook paints a different picture. On October 25, 361,000 ETH was withdrawn from exchanges; the largest outflow since May 30. This development indicates that investors are acting in the long term.

Ethereum (ETH) whales are cautious

Despite ETH's 7.54% increase in the last week, whale movements indicate that large holders are still undecided. The number of addresses holding at least 1,000 ETH continues to decrease since the beginning of October; this number, which was 5,614 on October 1st, has dropped to 5,534 as of October 30th.

Although there was a temporary increase in the number of whales with a large amount of ETH withdrawn from the exchanges on October 25, this number is again trending downwards.

It is important to track whale activities because these large investors can have a critical impact on the market. The decrease in the number of wallets holding over 1,000 ETH suggests a lack of confidence among large investors, indicating that potential buying support may decrease.

This trend may indicate a bearish expectation for ETH; as fewer whales could mean a decrease in large-scale purchases, which generally reduces the necessary support for prices to rise or remain strong.

$3400 can be targeted for Ethereum

Despite the cautious stance of the whales, EMA lines are signaling an upward trend for ETH price. The 'golden cross' formed by the short-term EMA lines crossing the long-term ones upwards is generally a technical signal indicating a strong potential for price increase.

If the uptrend continues to strengthen, ETH may test the $2,820 resistance level first. If this level is surpassed, the price could advance to the $3,400 resistance, which represents a potential increase of 25%.

However, if the uptrend weakens and turns downwards, ETH could test support levels at $2,308 and $2,150, which would imply a correction of approximately 20%.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.