$ETH 🚀 bullish
Ethereum Bullish Signal: ETH Exchange Outflows Turn Negative for the First Time Ever
Ethereum (ETH) is showing signs of a strong comeback, as a key indicator—known as the exchange flux balance—has turned negative for the first time in history. This change suggests that investors are pulling their ETH off exchanges in large amounts, a potential signal that they’re holding for the long term rather than planning to sell.
What is Exchange Flux Balance?
The exchange flux balance measures the net flow of ETH into and out of crypto exchanges. When the balance is positive, it means more ETH is being deposited than withdrawn, usually a sign that selling pressure may increase. A negative balance, on the other hand, indicates that more ETH is leaving exchanges, often a sign of investor confidence and accumulation.
According to Joao Wedson, CEO of analytics firm Alphractal, billions of dollars' worth of ETH have recently been withdrawn from exchanges. This trend has picked up speed since mid-July and points to growing accumulation and shrinking supply—both considered bullish signals.
In fact, data from Glassnode shows that ETH balances on exchanges are now at their lowest level in nine years, with only about 15.72 million ETH currently held on trading platforms. This drop in supply means there’s less ETH available for immediate sale, which could drive prices up due to limited liquidity.
ETH Price Outlook: $4,500 Is the Key Level to Watch
While ETH is currently trading around $4,305, analysts say it needs to break above $4,500 and turn that level into support to continue its uptrend. This price level has acted as resistance since ETH dipped on August 29.
Crypto trader Jelle noted that ETH recently broke out of a falling wedge pattern—a bullish sign—and is now hovering above important support. A confirmed move above $4,500 could open the door for a run to new highs.
Another analyst, Donald Dean, observed that ETH is trading within a tight bullish pattern known as a bull pennant. A strong daily close above the pennant’s upper boundary at $4,500 could confirm a breakout. If that happens, Dean sees possible price targets at $5,766, $6,658, and even $9,547, based on Fibonacci retracement levels.
With multiple bullish signals and decreasing supply on exchanges, many believe ETH could be on track to break above $5,000 in the coming days or weeks.
