Ethereum Shows Bullish Signs Despite Market Turbulence
In a surprising turn of events, Ethereum’s market dynamics are showing strong bullish indicators despite recent price volatility. Recent concerns about an ETH death cross appear to be overshadowed by significant accumulation patterns emerging from on-chain data.
Cost Basis Distribution Reveals Massive Accumulation
According to Glassnode’s latest analysis, Ethereum’s Cost Basis Distribution (CBD) metric is trending downward, but not for the reasons typically associated with bearish sentiment. Instead, this decline signals substantial accumulation at lower price levels, with two critical zones emerging:
- Support Zone: 786,660 ETH purchased at $2,632
- Resistance Zone: 1.2 million ETH acquired at $3,149
Exchange Outflows Signal Bullish Momentum
A significant development over the weekend saw derivative exchange outflows dropping below 400,000 ETH – one of the largest in recent history. This massive withdrawal of ETH from exchanges typically precedes bullish price action, as it reduces immediate selling pressure.
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Technical Analysis Points to $7.5K Target
Market technician Jonathan Carter has identified a massive Ascending Triangle pattern on Ethereum’s weekly chart, suggesting potential targets at:
- $3,200 (immediate resistance)
- $4,000 (psychological level)
- $4,850 (previous all-time high)
- $6,000 (extension target)
- $7,500 (ultimate price target)
Market Implications and Future Outlook
The combination of strong accumulation patterns, significant exchange outflows, and bullish technical formations suggests Ethereum could be preparing for a substantial move upward. Investors appear to be positioning themselves for this potential rally by averaging down their positions rather than exiting the market.
Source: Bitcoinist