Ethereum News Today: Ether's Historic Shift to Long-Term Holding Signals Bullish Turn

Ether’s cumulative exchange flux balance turned negative for the first time in history, a significant shift in investor behavior that suggests increasing accumulation and a potential resumption of an uptrend. This metric, tracked by Alphractal, reflects the net flow of ETH across exchanges over time. A negative balance indicates that more ETH is leaving exchanges than being deposited, signaling a preference for long-term holding over short-term trading. Joao Wedson, CEO of Alphractal, noted that billions of dollars in ETH are now flowing out of exchanges, which could mark a turning point in ETH investor behavior. The trend has accelerated since mid-July, with exchange outflows suggesting decreasing supply and bullish price dynamics.

The overall ETH balance on exchanges has dropped to its lowest level in nearly a decade. As of Friday, the exchange-held Ether supply stood at 15.72 million ETH, a level not seen since July 2016, according to Glassnode data. This reduction in available supply means fewer tokens are ready for immediate selling, potentially triggering a liquidity shortage that could drive prices higher over time. Analysts view this as a sign of strong investor confidence and a shift toward a bull cycle for the cryptocurrency.

Ether’s price action is closely tied to key resistance levels. A critical threshold for ETH is $4,500. If bulls manage to push the price above this level, it could flip into support, removing major barriers to higher ground. Crypto trader Jelle highlighted that ETH has already broken out of a falling wedge pattern and retested it, now hovering above key support. A decisive close above $4,500 would signal a strong continuation of the bullish momentum. Fellow analyst Donald Dean reinforced this view, identifying a bull pennant formation and using Fibonacci retracement levels to project potential price targets at $5,766, $6,658, and $9,547 if the breakout is confirmed.

The broader cryptocurrency market has also seen significant movement. Bitcoin, for instance, recently saw $3 billion in short positions at risk of liquidation if it reached $117,000. Such liquidation events can create a short squeeze, where forced buying pressure from short sellers drives prices even higher. Traders are closely watching BTC/USD for signs of bullish momentum, as Bitcoin’s performance often influences the broader market, including altcoins like ETH.

While the data points to a favorable environment for Ethereum, market participants remain cautious. Price targets and technical analyses are widely shared, but actual outcomes depend on market conditions and broader economic factors. For example, recent nonfarm payrolls data in the U.S. suggested a weakening labor market, which increased expectations of a Federal Reserve rate cut in September. However, Bitcoin’s price action did not react strongly to the data, leaving uncertainty about its next move. Despite this, Ethereum’s unique accumulation dynamics and declining exchange supply continue to provide a strong foundation for potential price appreciation in the near term.

Source: [1] Ether’s exchange flux turns negative for the first time (https://cointelegraph.com/news/ethereum-bull-run-eth-exchange-flux-turns-negative-for-the-first-time) [2] $3B in Shorts Face Liquidation if BTC Hits $117K (https://www.bitget.com/news/detail/12560604954613)