TL;DR
-
Ethereum’s massive exchange outflows and increased whale accumulation fuel optimism for a continued uptrend.
-
However, ETH’s RSI on the daily scale has climbed to 71, entering overbought territory and signaling a potential short-term correction.
Ready for Another Catapult?
The second-biggest cryptocurrency has taken center stage lately, with its valuation soaring in the past few weeks and outperforming bitcoin (BTC) and many other leading digital assets. On Мay 13, the price for one ether (ETH) surged past $2,700 for the first time since late February.
In the following days, there was a slight retracement, and currently, the asset is worth roughly $2,550 (per CoinGecko’s data). Still, this represents a significant increase compared to the crash below $1,400 observed at the start of April and a 54% rise on a monthly scale.
According to some important metrics, there’s much more room for growth. The popular X user Ali Martinez revealed that around one million ETH had been withdrawn from exchanges in the last month alone. The USD equivalent of this significant stash is more than $2.5 billion. As CryptoPotato previously reported, nearly half of the amount was withdrawn in the past seven days.
The development indicates a shift from centralized exchanges toward self-custody methods and is generally considered a bullish factor since it reduces the immediate selling pressure.
Additionally, many well-known X users have pointed to the increased whale activity lately. CryptoJack claimed that large investors have been loading up ETH “like never before.” It is worth mentioning that he showed the buying spree of Abraxas Capital, an investment company that recently acquired millions of tokens.
The whales’ actions are closely monitored by smaller players who may decide to follow suit and hop on the bandwagon. Large-scale accumulation also reduces the available supply of ETH, and when paired with steady or rising demand, this can create upward pressure on the price.
Meanwhile, multiple analysts have recently made optimistic predictions about the short term. X user Kamran Asghar set the next target at $2,800, while CRYPTOWZRD expects a successful breakout of the $2.8K resistance level, which could push the price toward $3,550.
Those willing to explore additional forecasts involving ETH can take a look at our dedicated article here.
This Indicator Suggests a Possible Pullback
Despite the overall bullish conditions and opinions, ETH’s Relative Strength Index (RSI) warns about a potential downward trajectory in the short term. The momentum oscillator measures the speed and magnitude of recent price changes to help traders assess possible trend reversals.
It varies from 0 to 100, and readings above 70 typically signal that ETH has entered overbought territory and could soon experience a correction. The RSI on a daily scale is set at 71.
The post 1,000,000 ETH: Could This Massive Move Ignite Another Price Rally? appeared first on CryptoPotato.
