Check out why the ETH bulls may have a cause for celebration soon.
Ethereum (ETH) slipped once again below the $3,800 mark, but several factors suggest a substantial price rebound could be incoming. One such element is the reduced number of tokens stored on cryptocurrency exchanges.
On the other hand, some analysts warn that the asset might be poised for an even more severe pullback in the short term.
Shifting to Self-Custody?
The renowned analyst on X, Ali Martinez, revealed that 200,000 ETH have been withdrawn from crypto exchanges in the past 48 hours alone. The USD equivalent of the stash is around $770 million (calculated at current rates).
The development signals that investors have been abandoning centralized platforms and moving their holdings into self-custody wallets, thereby reducing immediate selling pressure.
Earlier this week, the total amount of ETH stored on crypto exchanges dropped to a nine-year low of around 15.8 million coins, while today’s figure is quite close to that level.
It is important to note that Martinez made another clarification on the matter. Just recently, he stated that 230,000 ETH tokens were moved by large holders (possibly exchanges) in the last week. The move may include withdrawals, deposits, internal transfers, or other operations that differ from the other development.
Separately, Ethereum’s Relative Strength Index (RSI) stands clearly on the bullish side (at least as of now). The technical analysis tool, which measures the speed and magnitude of recent price changes, is just north of 30, which puts it close to the oversold zone and poised for a potential surge. Conversely, ratios above 70 suggest the asset is overbought and are considered bearish for the price.
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Do or Die for ETH
As of press time, Ethereum trades at approximately $3,800, down 5% on a daily scale and 8% over the past month. The X user Ted mentioned the drop under $4,000 following the Fed’s decision to lower the interest rates in the US and the US-China trade talks, opining that this is “a classic bear trap or the crypto market is going way lower.” Kamran Asghar chipped in, too, envisioning a possible dip to $3,400-$3,500 before a renewed rally.
Others, like Max Crypto, were much more optimistic, predicting an “up-only” scenario in which ETH would explode to a new all-time high of $7,000. According to the analyst, the asset’s recent performance resembles the pre-pump condition from May this year, which was followed by a substantial surge shortly after.
Meanwhile, whales with a 100% winning rate have recently opened long positions in ETH, sparking speculation that they might know something we don’t.
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