Ethereum (ETH) is currently trading about 11% below local highs of around $2,730. Investors are hopeful about potential price gains in the coming days, buoyed by encouraging supply chain data.

Glassnode’s key metrics show a decline in ETH inflows into exchanges, suggesting investors are holding on to their assets rather than selling them. This trend usually indicates increased accumulation and may herald a bullish breakout.

As the broader cryptocurrency market evolves, Ethereum investors remain vigilant, anticipating a bullish recovery that could send prices higher. The decline in currency inflows could mean that investors are bracing for a potential move higher as they seem more willing to hold on to their positions during this key phase.

If Ethereum successfully breaks above critical resistance levels, it could reignite its bullish momentum and attract further investment. The next few days will be crucial for ETH as investors closely monitor price action and on-chain indicators for signs of a resurgence. Given the right conditions, Ethereum could set up-to-date highs, reinforcing the overall positive market sentiment.

The net position change of Ethereum exchanges is decreasing

Ethereum (ETH) is currently trading at a key price level after a 15% decline from local highs. The broader cryptocurrency industry is brimming with expectations for massive growth following the Federal Reserve’s decision to lower interest rates a few weeks ago. However, despite the hopeful outlook, prices struggled to rise, leaving many investors in uncertainty.

Luckily, on-chain data from Glassnode suggests a reduction in selling pressure, which could improve market sentiment and pave the way for a potential ETH rebound. One key indicator to take into account is the Ethereum exchange’s net position change rate, which has been failing since mid-September. This indicator tracks the flow of ETH into and out of exchanges, and its recent decline means that inflows have dropped significantly.

Lower inflows typically indicate reduced selling pressure as fewer investors move their assets to exchanges to sell. This change in dynamics reflects a positive shift in market sentiment, suggesting that investors may be less willing to liquidate their positions at current price levels.

As selling activity declines, Ethereum may get a much-needed rest to recover from the recent decline.

Moreover, an enhance in investor confidence may result in an upward move in the coming days. Ethereum could be primed for a resurgence if this trend continues, potentially setting the stage for a bullish breakout when market dynamics shift in its favor. As investors remain vigilant, all eyes will be on ETH to see if it can capitalize on the improved sentiment and regain its upward momentum.

Testing ETH key supply levels

Ethereum (ETH) is trading at $2,448 after being rejected by the 4-hour exponential moving average (EMA) at $2,516. The price also struggled to maintain momentum above the 4-hour moving average (MA) at $2,458, indicating a critical moment for ETH. If Ethereum fails to regain both key levels in the coming days, there could be a stern risk of a decline towards the $2,200 area, which could trigger a deeper correction.

Conversely, if ETH manages to break above and hold these key indicators, it could signal a reversal in the uptrend, opening the door to a pointed rally towards the $2,700 resistance area. The outcome of the next few days will be crucial in determining Ethereum’s trajectory.

Traders and investors will be monitoring these levels closely as the possibility of them recovering could provide the momentum ETH needs to recover and attempt to test higher price levels. The current price action reflects the uncertainty in the market, making it imperative for ETH to strengthen its position to inspire confidence and drive growth.

Featured image from Dall-E, chart from TradingView