Ethereum – Assessing whether a new bull run may be close for the altcoin

Key Takeaways

ETH exchange flux hinted at shifting sentiment for the first time, alluding to significant bullish presence across the market. Accumulation has been rising too, while the exchange reserves remained flat.

Ethereum’s [ETH] price hasn’t gained by much on the back of the market’s growing bullish sentiment. In fact, the altcoin saw gains of just 0.73%. And yet, ETH seemed to be holding strong if its 30-day outlook was looked at.

Typically, a hike in accumulation and a fall in selling pressure support a positive short-term price outlook. However, ETH’s case appeared to be different at press time.

Hence, it’s worth analyzing whether the asset still has potential for a bull run in the days ahead.

A new milestone on the cards…

At the time of writing, Ethereum’s Exchange Flux Balance seemed to show billions of dollars flowing into the asset over the past 24 hours. In fact, this metric—which tracks cumulative inflows and outflows of ETH across all exchanges (Netflows)—turned negative for the first time ever.

A negative reading is usually indicative of a positive trajectory for an asset. Especially since it alludes to the fact that more withdrawals than deposits are being made by investors.

Source: Alphractal

The Exchange Netflows on CryptoQuant, which tracks inflows and outflows across a limited set of exchanges, underlined a similar trend too.

The total exchange netflows stood at 36,089 ETH over the last 24 hours, confirming that investors may be moving more ETH into private wallets. Especially as they continue to accumulate.

ETH reserves could be drying up

Ethereum’s Exchange Reserves on CryptoQuant have remained largely flat too, with the same seeing no significant drop or hike.

In fact, the total ETH held across all exchanges tracked by CryptoQuant stood at 17.3 million, at the time of writing.

Source: CryptoQuant

The attached chart revealed a visible downtrend, meaning less ETH may be available for sale in the market – Indicative that a potential supply squeeze may be building.

Moreover, reserves have stayed flat over the past few days. This finding seemed to confirm calmer market sentiment, with investors making no notable moves.

A hike in ETH accumulation

Finally, the Accumulation/Distribution (A/D) indicator highlighted a bullish market trend.

On the 1-day chart, the indicator was in positive territory, with the total accumulation climbing to 2.23 million ETH. This hinted at more buyers than sellers in the market.

Source: TradingView

Similarly, the 100-day Simple Moving Average (SMA) has stayed above the 200-day SMA on the same chart – A sign of strong mid-term momentum.

However, full confirmation of a bullish trend would likely come once the 20-day and 50-day SMAs cross above the 100-day SMA. At the time of writing, both shorter SMAs were above the 200-day SMA.

To put it simply, the market trend seemed to be leaning towards the bulls. And, Ethereum [ETH] may continue to rally in the days ahead.