Ethereum Outflows Hit Spot Exchanges Again: Bullish Signal Or Neutral Flows?

Ethereum had a relatively quiet weekend, with price action showing signs of stability after last week’s ￰0￱ has reclaimed the $4,100 level, and analysts now point to the $4,000 mark as a crucial line of ￰1￱ bulls manage to hold above this support, the market could see a strong surge in the coming days, setting the stage for Ethereum to retest higher ￰2￱ Reading: Ethereum OI Suffers Its Biggest Cleanup Since Early 2024 – Details Adding weight to this outlook, a key report by CryptoQuant highlights that Ethereum supply on spot exchanges continues to ￰3￱ trend often signals that investors are withdrawing ETH to self-custody or staking, reducing available sell-side liquidity on exchanges.

Historically, such declines in exchange reserves have paved the way for rallies, as demand eventually absorbs the reduced supply. However, while the data is supportive, analysts caution that the real catalyst remains ￰4￱ strong inflows of new buyers, supply-side reductions alone may not be enough to push ETH significantly ￰5￱ coming days will therefore be critical, with Ethereum’s ability to hold above $4,000 serving as a key indicator of whether the next leg of the rally is ready to ￰6￱ Outflows Point to Long-Term Bullish Setup According to the CryptoQuant report, recent Ethereum outflows from spot exchanges are largely tied to new buys, where investors purchase ETH and immediately move it into self-custody or ￰7￱ behavior reduces sell-side liquidity and, over time, can create the foundation for price ￰8￱ at past cycles, clear patterns emerge: Network Congestion & UNI Airdrops: During this phase, high gas fees and strong macro tailwinds fueled ￰9￱ accelerated, leading to a robust bull run as liquidity ￰10￱ Bear Phase & FTX Collapse: At the peak of quantitative tightening (QT), the FTX crisis sparked a bank run, with older coins leaving ￰11￱ fear, improving macro conditions soon restored demand, driving ETH ￰12￱ see the same trend today: reserves are falling, yet prices remain flat as selling offsets new buying.

Historically, once demand strengthens, these periods lead to rallies. Importantly, this is not a supply shock in the strict financial sense. Instead, it reflects reduced exchange reserves and lower sell-side ￰13￱ question is whether demand will ￰14￱ rate cuts, slower QT, and rising global liquidity continue, ETH could be primed for a strong long-term ￰15￱ the meantime, price volatility is ￰16￱ ETH dips below the accumulating whales’ realized price, it may offer a buying opportunity, just as it has in past ￰17￱ dynamic shows investor trust in Ethereum and reinforces the view that falling reserves prepare the ground for the next ￰18￱ Reading: MrBeast Enters The Aster Game: $1M Buy Signals Growing Interest Price Action Details: Relief Rally Or Recovery?

Ethereum (ETH) is attempting to stabilize after its sharp drop below the $4,000 level, with the latest chart showing a modest recovery to around $4,131. The bounce comes after ETH briefly tested lows near $3,900, suggesting that buyers are stepping in to defend this critical support ￰19￱ the 8-hour chart, ETH has reclaimed the 200-day EMA (red line), which is now acting as a short-term pivot point. However, the 50-day (blue) and 100-day (green) moving averages remain above the current price, creating overhead resistance between $4,250 and $4,400. A clean break and consolidation above these levels will be necessary for bulls to regain momentum and target higher ranges toward $4,600.

Related Reading: 11 Wallets Receive 295,861 Ethereum ($1.19B) From Major Institutions: Accumulation Or OTC Shuffle? For now, ETH’s structure is ￰20￱ recent rejection from $4,600 and the subsequent breakdown highlight the intensity of selling pressure. Still, the rebound from sub-$4,000 levels signals that demand remains strong, particularly from accumulation wallets and whales, which have been absorbing ￰21￱ ETH holds above $4,000 and pushes through $4,250, the market could enter a recovery phase. Conversely, failure to maintain this rebound may expose ETH to a retest of $3,800 or even lower support ￰22￱ coming sessions will be critical in defining ETH’s short-term ￰23￱ image from Dall-E, chart from TradingView