Ethereum is currently showing a potentially bullish signal. Recent data shows that investors are actively buying dips, a strategy that has often resulted in price recovery in the past. For example, CoinGlass data showed that net flow on spot exchanges for Ethereum reached a negative $359 million on November 3rd, the third largest daily outflow since October. This development indicates that more Ethereum has been withdrawn from exchange portfolios into private wallets than has been deposited. This phenomenon, often interpreted as a bullish sign, demonstrates that investors are confident and focused on long-term holding.
The recent Ethereum outflows follow a sharp decline, which could indicate that investors are strategically using the lower prices to establish positions with the intention of holding them for an extended period. Moreover, there have been two previous large outflows: $677 million on October 10th and $361 million on October 21st. Both were preceded by price increases of 13% and 7,9%, respectively. This suggests that such outflows are often accompanied by significant price recoveries.
The recent selloff even pushed Ethereum to an intraday low of $3.466, resulting in the liquidation of $325 million in long positions. This deleveraging often coincides with a potential bullish reversal. Shivam Thakral, CEO of the Indian exchange BuyUcoin, noted that the $359 million in outflows is significant and could indicate renewed accumulation or dip buying. Historically, this movement can indicate growing confidence among investors to withdraw Ethereum from exchanges for long-term holdings.
Still, it's important to keep an eye on the situation. Thakral added that while the signal seems positive, actual upward movement depends on the presence of new demand in the coming trading days. Ethereum's strong seasonal performance at the end of the year could also positively impact a potential rebound, especially if on-chain activity and staking flows remain stable.
Another factor that could affect the chances of a recovery is the temporary pause in the US-China trade conflict. This reduces a major pressure on risky assets. On the other hand, macroeconomic uncertainties, such as volatility Interest rate changes and geopolitical tensions pose risks that could further impact Ethereum's liquidity and market performance.
Currently, Ethereum is trading down 5,9% within a 24-hour period, at $3.498. Performance over two weeks and one month is even down double-digit percentages, according to CoinGecko. Forecast market users are pessimistic about Ethereum's future, with a 61% chance that it will course is moving towards $3.100, rather than the hopeful $4.500.
What are the significant signals for Ethereum price?
Ethereum's recent $359 million outflow points to investor interest in buying during price dips, which historically precede price increases of 7% to 13%.
How do macroeconomic factors influence the Ethereum market?
Macroeconomic risks such as geopolitical tensions and interest rate changes remain a key concern, impacting Ethereum's liquidity and investment climate.
What are the short-term expectations?
While the signals are bullish for now, actual price action depends on the level of new demand. Ethereum's seasonally strong performance at the end of the year could potentially have a positive impact on future price movements.