NAIROBI (CoinChapter.com) — Ethereum (ETH) could be approaching a bottom as it trades around 60% below its peak, while its top-ranking rival, Bitcoin (BTC), is only 6% off its high.
Ethereum (ETH) Fund Outflows Signal Investor Confidence
Data from CryptoQuant shows that since Aug. 5, Ethereum has experienced a steady stream of outflows from spot exchanges. Over the past week, about 300,000 ETH, valued at roughly $760 million, left exchanges, with a large chunk moving to staking protocols. Staked ETH grew by 130,000, indicating a shift toward long-term holding and staking rewards over short-term trading.
On-chain activity supports the notion of underlying demand. Ethereum’s daily trading volume reached $12.2 billion, placing it behind Bitcoin but ahead of Solana, which recorded $2.7 billion in daily trade volume.
ETF Outflows Paint a Mixed Picture
In contrast to the optimistic on-chain picture, Ethereum ETFs have seen large outflows, particularly in the past week. CoinShares data reveals that Ethereum ETFs recorded $35 million in negative flows, the largest among digital assets. This contrasts with Bitcoin ETFs, which posted net inflows of $920 million, and Solana ETFs, which saw $10.8 million in positive flows.
Institutional investors appear cautious regarding Ethereum (ETH), reflecting hesitancy that contrasts with the asset’s on-chain performance.
Analysts See Signs of Reversal in ETH’s Chart Patterns
As per the 10X Research report, the ETH weekly stochastic indicators show the formation of a bottom for the altcoin. After dropping to less than 10%, this indicator shows trend reversal again. Historically, whenever this happens, it suggests the formation of the Ethereum price bottom.
Ethereum’s price, currently trading at around $2,510, faces resistance at $2,594 and support around $2,395. If the price breaches its Simple Moving Averages (SMA) convergence, analysts suggest ETH could target the $2,707 level, bolstered by positive technical signals.
Altbender, a prominent market analyst, echoed this sentiment, calling Ethereum the “most mispriced asset” due to its 60% drop from peak values, presenting what he sees as a buying opportunity. His analysis shows higher highs and higher lows, adding weight to a bullish case for Ethereum’s near-term outlook.
Analyst Income Sharks agrees, noting Ethereum’s pattern of “higher highs and higher lows” as a bullish sign. “Everyone says it’s over at the lows. Still making higher highs and higher lows. Supertrend is bullish,” he stated, comparing Ethereum’s resilience to Solana’s recovery from $10.
Ethereum seems to be finding a floor, but its path ahead hinges on broader market trends and investor sentiment. On-chain data and technical indicators currently hint at a possible turnaround.
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