Ethereum appears to be at an inflection point as significant amounts of ETH leave exchanges, according to on-chain data. The pricing is also hovering around a technical support level that could indicate the direction of ETH’s next major movement.
Ethereum’s critical moment is represented by the fact that $660 million worth of ETH exited exchanges as the price of ETH tested the $1,980 support area. At press time, the coin is trading at $1,956.64 with an increase of 2.01% over the past 24 hours.
Chart Signals Crucial Support Test
ETH’s price is currently very near $1,980 on the daily chart. After a long-term decline throughout most of this year’s cycle, the current price of ETH is lower by more than 33% from above $3,000 earlier this cycle.
Currently, the price of ETH has not risen above the 50 or 200 daily moving averages, nor has it broken out of its longer-term downtrend; therefore, ETH remains under the influence of the broader bearish market forces.
The $1,950–$2,000 area is a much larger potential area of support for the price of ETH, due to the amount of interest being shown.
The current MACD remains in a negative trend with the histogram bars becoming smaller. Therefore, this suggests that the selling pressure on ETH may be declining.
If ETH can maintain its price above $1,950, the price of ETH could increase to $2,200 or even $2,400 in the near future. If ETH breaks below $1,950, this could lead to a price in the $1,800 range.
Also Read: Ethereum’s (ETH) Massive Rise Coming Through: 10% Rally in 5 Days
Ali Charts Highlights Massive ETH Outflows
Crypto Analyst Ali Charts on his recent post says that 330,000 ETH (more than $660 million) has been withdrawn from exchanges in the last week, and historically large withdrawals from exchange accounts have been a positive indicator of future price movements; usually, investors take their crypto out of trading wallets when they plan to save (hold) rather than trade it again (sell).
If interest in holding continues and support persists, Ethereum may eventually stabilize and look to recover.
In summary, Ethereum is currently in a pivotal technical and on-chain position. The next few days will reveal if it will use $1980 as support for recovery or further declines.
Also Read: Ethereum Mainnet Upgrade: ERC-8004 Powers Trusted AI Agents Across Ecosystems
