The Ethereum market has been relatively calm recently, with its price oscillating within a narrow trading range. This is in line with the broader cryptocurrency market, which has been experiencing a consolidation phase. However, Ethereum’s outflow from exchanges reached a new high, signaling a shift that could ignite a new price movement.

108,521 ETH, worth more than $418 million at current market prices, were withdrawn from cryptocurrency exchanges, marking the largest single-day outflow since March 13. According to blockchain data provider Glassnode, this massive withdrawal suggests that investors are holding their Ethereum assets rather than selling them. Typically, such a move indicates reduced selling pressure, a scenario that often leads to price appreciation in the absence of supply-side pressure.

The decreased selling activity indicates that market participants are more inclined to hold their Ethereum, which could set the stage for a price increase, particularly if buying interest resurges.

Ethereum’s Relative Strength Index (RSI) Shows Room for Growth

In addition to the significant outflow, Ethereum’s Relative Strength Index (RSI) currently stands at 60.22. The RSI is a key indicator used by traders to measure whether an asset is overbought or oversold. Values above 70 are considered overbought, which could signal a potential price pullback, while values below 30 are seen as oversold, suggesting that the price might rebound. With Ethereum’s RSI sitting comfortably at 60.22, it is neither overbought nor oversold, which indicates steady demand with room for potential price growth.

This means that there is still space for Ethereum to rise before hitting overbought levels, signaling that a breakout could be imminent. Traders will be watching closely to see if this technical indicator continues to signal bullish momentum in the coming days.

Ethereum Price Prediction: Rally to $4,000 in Sight?

As of now, Ethereum is trading at around $3,866, just below the key resistance level of $4,069. If the selling pressure continues to ease and buying momentum increases, Ethereum could break above this resistance and move towards the $4,000 price mark. A successful breakout could also pave the way for Ethereum to reclaim its all-time high of $4,936, which was last reached in November 2021.

However, the price action depends largely on whether selling pressure continues to subside. If Ethereum holders begin to sell and take profits, the price could see a pullback to the $3,388 level, invalidating the bullish scenario.

Ethereum’s Long-Term Outlook

Ethereum’s outlook remains positive, with ongoing development in its network. The shift to Ethereum 2.0 and improvements like the introduction of the staking mechanism have strengthened the network and its long-term value proposition. As the Ethereum network grows, so too does the demand for its native token, which is reflected in its increased adoption by investors and institutions alike.

Moreover, Ethereum’s price dynamics are influenced by macroeconomic factors, including inflation concerns and the broader movement of the cryptocurrency market. As Ethereum continues to solidify its position in the digital asset space, it is likely that more institutional investors will look to gain exposure to ETH, which will further drive demand and potentially support price rallies.

Conclusion

The recent outflow of over $418 million in Ethereum from exchanges is a key sign of growing confidence in the asset. This trend, combined with Ethereum’s current RSI indicating room for growth, suggests that Ethereum could soon break past its resistance and attempt to reach the $4,000 price point. Investors will closely monitor the market’s next moves, as the next few days could be crucial in determining whether Ethereum will continue its upward trajectory or experience a temporary pullback.