ETH Stored Off Exchanges Reaches New ATH
The number of large addresses holding Ethereum (ETH) on non-exchange wallets has reached a new all-time high (ATH). This indicates a growing trend of market participants buying ETH at a fast rate and opting to store it in self-custody wallets rather than on exchanges. At present, the supply held by the top non-exchange addresses stands at 43.41 million, highlighting the increasing interest in holding ETH off exchanges. This also suggests that the intent to sell ETH is almost non-existent among these holders.
Potential 50% Rally if Exchange Inflow Reduces, Volatility Remains High
The decreasing number of ETH held in the top 150 exchange wallets suggests that there could potentially be a rally in the price of Ethereum. If the inflow of ETH into exchanges decreases and volatility remains high, there is a possibility of a 50% rally. However, it is important to note that the rally might not happen in the short term, as exchange inflow and outflow continue to influence the price of ETH.
Market Participants Buying ETH at a Fast Rate, Intent to Sell Minimal
The increasing number of ETH held in non-exchange wallets indicates that market participants are buying ETH at a fast rate. This is a positive sign for the cryptocurrency, as it suggests that the intent to sell is minimal. With more holders opting to store their ETH in self-custody wallets, the selling pressure on the market is reduced. This could potentially lead to a price increase and a positive outlook for ETH.
Sellers Need to Take a Break as ETH Accumulates
The rising accumulation of ETH in non-exchange wallets suggests that sellers need to take a break. The recent selling pressure on Ethereum has contributed to the inflow of ETH into exchanges outpacing the outflows. However, if the selling pressure decreases and more ETH is accumulated in non-exchange wallets, the price of ETH may have the potential to retest the $2,444 resistance level and even cross the $2,500 mark in the long term.
Short-Term Volatility and Risky Trading, but Long-Term Promise for ETH
While the long-term outlook for Ethereum looks promising, there are indications of short-term volatility and risky trading. The Ethereum seven-day realized volatility shows that price fluctuations may be extreme in the short term. Traders targeting short-term gains should be cautious and consider halting opening long or short contracts for now. However, the mid to long term looks promising for Ethereum, as indicated by the state of the exponential moving average (EMA) on the daily chart. If the 50 EMA remains bullish and crosses over the 200 EMA, ETH may experience a jump of 50% in a few months and even cross the $3,000 mark.
Analyst comment
Positive news: The increasing number of ETH held in non-exchange wallets indicates market participants are buying ETH at a fast rate, with minimal intent to sell. This reduces selling pressure and suggests a potential price increase.
Negative news: Short-term volatility and risky trading are indicated, with extreme price fluctuations. Traders should be cautious and consider halting opening contracts.
Neutral news: The rising accumulation of ETH in non-exchange wallets suggests sellers need to take a break, potentially leading to a retest of resistance levels in the long term. The mid to long term looks promising for ETH, as indicated by the state of the EMA on the daily chart.
