Ethereum surges past $2,350, bulls eye $3,260 rally as $500M ETH withdrawn from exchanges

Ethereum's price has recently shown significant resilience, reclaiming critical levels and demonstrating patterns that historically precede rallies. The altcoin's price action has captured the attention of traders, with key indicators hinting at the potential for a strong upward move. Ethereum reclaimed $2,350 on the charts, with technical indicators supporting a potential rally towards $3,260. On 6 March, ETH was trading at $2,203.57, with the realized price at $2,075.57.

The altcoin’s pricing bands identified key levels, with ETH breaking above a crucial threshold – a sign of strong bullish momentum. Historical trends revealed that similar breakouts led to price surges, such as the rise from $1,042k in August 2022 to $3,126k by August 2024. This pattern suggested that ETH’s latest move alluded to accumulation and reduced selling pressure. Hence, a rally to $3,260 might be feasible, offering a potential 48% upside. However, failure to hold $2,351 could push ETH down to $1,444 – a possible 34% decline.

Over $500 million worth of ETH was withdrawn from exchanges, indicating an uptick in accumulation among traders. The outflow volume chart on 8 March showed a 24-hour change of +70.29% – a 7-day change of -10.08% and a 30-day hike of +13.23%. 3 March’s outflows peaked at 1 million ETH, valued at $2.4 billion, before declining to 400k ETH by 6 March. The sharp 24-hour surge reflected strong buying pressure, reducing available supply on major exchanges. The 30-day trend reinforced the long-term accumulation pattern, often a precursor to price hikes. However, the 7-day decline pointed to short-term profit-taking, which could momentarily slow momentum. This pattern resembled early 2024 when outflows preceded a 20% price jump. If outflows continue, ETH could move towards $2,600. Conversely, if selling pressure returns, ETH might retest $2,200 on the charts.