Ethereum Bull Run Imminent? $3.5 Billion ETH Leaves Exchanges

Ethereum (ETH), the world’s second-largest cryptocurrency by market cap appears bullish and is poised for a notable upside rally due to its bullish price action and favorable on-chain metrics. In addition to this, whales and investors have moved a significant amount of ETH from the exchanges in the past week.

Fall of Ethereum Exchange Reserves

According to the on-chain analytics firm CryptoQuant, Ethereum’s exchange reserves have dropped from $42 billion to nearly $38.5 billion, a decline of approximately $3.5 billion. This significant decline in the exchange reserve suggests a potential sign of accumulation or acquisitions by whales or investors.

Additionally, the decline in exchange reserves has occurred near a strong support area, where ETH is currently trading.

Ethereum Technical Analysis and Upcoming Levels

According to expert technical analysis, ETH appears bullish and is moving within a bullish channel pattern, while forming higher high and higher low. Currently, ETH is at the lower boundary of the pattern, forming a higher low.

Based on the historical data and price correction, there is a strong possibility that the asset could jump by 12% to reach the resistance level of $2,800 in the coming days. In fact, this level serves not only as resistance but also aligns with the 200-day Exponential Moving Average (EMA) and the upper boundary of the bullish pattern.

This bullish thesis will only hold if ETH remains above the $2,400 level, otherwise, it may fail.

Bullish On-Chain Metrics

ETH’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, ETH’s long/short ratio currently stands at 1.36 over the past four hours, indicating strong bullish sentiment among traders. During the same period, 57.76% of top traders opened long positions, while 42.24% opened short positions.

ETH’s open interest has jumped by 4.9% over the past 24 hours and 3.1% over the past four hours. This rising open interest suggests growing trader interest in the asset, leading to the formation of new positions.

While examining bullish on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and may continue to support it in the upcoming rally.

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Current Price Momentum

At press time, ETH is trading near the $2,520 level and has experienced an upside rally of 1.20% over the past 24 hours. During the same period, its trading volume has jumped by 90%, indicating heightened participation from traders and investors amid a potential upside rally.