Ethereum surges past $2,350 as traders accumulate $500 million in ETH

Ethereum’s recent price movements have sparked significant interest among traders and analysts, with key metrics suggesting a potential rally towards $3,260. The cryptocurrency has shown resilience in reclaiming pivotal price levels, indicating a strong market sentiment that is not easily shaken. Analysts have noted that the current accumulation trends and breakout patterns could lead to significant price movements in the near future.

Technical indicators further support this bullish outlook. Ethereum successfully reclaimed the $2,350 benchmark, with major price levels being broken, which is indicative of forthcoming bullish momentum. On March 6, ETH was trading at $2,203.57, illustrating significant market fluctuations. The altcoin’s pricing bands have highlighted crucial support and resistance levels, confirming that breaking above $2,350 is crucial. This breakout reinforces predictions of a potential rally towards $3,260, marking a possible 48% increase for traders. However, if the price fails to maintain support, a decline to $1,444 could occur, representing a potential 34% drop.

Recent data indicates that over $500 million worth of ETH has been withdrawn from exchanges, signifying a notable increase in accumulation among traders. The outflow volume chart from March 8 highlighted a 24-hour increase of +70.29%, with a 7-day change of -10.08% and a 30-day increase of +13.23%. Such trends generally indicate a positive sentiment towards long-term holdings. On March 3, outflows peaked at 1 million ETH valued at approximately $2.4 billion before reducing to 400k ETH by March 6. The sharp increase indicated robust buying interest, tightening the available supply on prominent exchanges. Historically, such significant outflows have preceded price surges, hinting at a potential upward trajectory for ETH.

The recent netflow analysis of Ethereum has unveiled critical shifts in market sentiment. Net outflows reached their peak at -225.61K ETH on March 5, representing a value of around $540 million. Following this, the figure decreased to -112.81K ETH the next day, reflecting ongoing accumulation dynamics. The ongoing netflow decreases highlight a longer-term accumulation pattern, which typically leads to positive price movements.