Ethereum’s bullish momentum continues to strengthen as on-chain data reveals massive exchange withdrawals totaling $1.2 billion in the past week. This significant outflow comes as ETH sets a new local high of $2,739, suggesting strong accumulation ahead of a potential push toward the critical $3,100 resistance level.
The latest data from Sentora (formerly IntoTheBlock) shows sustained exchange outflows intensifying since early May, with investors moving substantial ETH holdings to private wallets. This trend typically signals reduced selling pressure and long-term accumulation, supporting Ethereum’s recent breakout above key resistance levels.
Technical Analysis Points to Continued Upside
ETH’s price action shows impressive strength after breaking above the psychologically important $2,600 level. The cryptocurrency is now trading well above both the 200-week EMA ($2,259) and SMA ($2,451), confirming the bullish trend reversal. Volume metrics support the move higher, with increased trading activity validating the breakout.
Key Resistance Levels Ahead
The next major hurdle for Ethereum lies in the $2,900-$3,100 range, which previously served as support in early 2024. A successful breach of this zone could trigger renewed momentum, potentially catalyzing broader altcoin market strength. Recent MVRV analysis suggests the $3,100 level represents a critical resistance point that could determine ETH’s medium-term trajectory.
Exchange Outflows Signal Strong Hands
The $1.2 billion in exchange withdrawals represents one of the largest outflow events in recent months, suggesting institutional and whale accumulation. This behavior often precedes significant price appreciation as supply constraints meet increasing demand.
Frequently Asked Questions
What do large exchange outflows indicate?
Exchange outflows typically signal investors moving crypto to private wallets for long-term holding, reducing available supply for trading and potentially supporting price appreciation.
What are the key resistance levels for ETH?
The immediate resistance zone lies between $2,900-$3,100, with $2,450 serving as crucial support aligned with the 200-week SMA.
Could this trigger an altseason?
Ethereum’s strong performance often leads broader altcoin rallies, with current market conditions and accumulation patterns suggesting increased probability of broader market strength.
