A record-breaking amount of Ethereum being taken off crypto exchanges has added to hopes for a broad-based rally in the asset’s price. More than $418 million worth of ETH-108,521 tokens-were withdrawn on December 14, which is the largest single-day exchange outflow since March 13, according to Glassnode.
This trend is a sign that investors are holding their ETH, hence reducing selling pressure and setting up conditions for the price to grow. The only thing analysts are thinking as Ethereum finally breaks through recent tight trading is increased buying pressure.
Currently, ETH’s RSI is at 60.22, which means that there is still stable demand but far from overbought. RSI values above 70 typically warn of a price pullback, while those below 30 suggest undervalued conditions. Ethereum’s position in a moderately bullish zone indicates room for further growth.
At the moment, Ethereum changes hands at $3,866, with the first resistance at $4,069. A proper breakout above this level could open the route to its all-time high of $4,936 seen in November 2021.
However, analysts caution that renewed selling pressure could derail this bullish outlook. If profit-taking resumes, Ethereum’s price might slip to $3,388.
The coming days will indeed be crucial for Ethereum, whether it will continue further upside or consolidate once again. Investor sentiment for now is optimistic as the market watches its next move.
