Ethereum Price Analysis - ETH Outflows Increase After Setting Fresh ATH Prices This Week - Institutions Already Here?

coincodex.com April 07 2021 11:07, UTC
Reading time: ~6 m

Key highlights:

  • Ethereum might be down by a small 1.3% today, but the coin is still up by almost 15% over the past week.
  • The cryptocurrency had set a new ATH price yesterday but struggled to close a daily candle above $2,113. 
  • Against Bitcoin, Ethereum pushed above resistance at ₿0.0361 to reach as high as ₿0.0365 yesterday but has since dropped to ₿0.0357

Buy Ethereum on Binance

Ethereum price $2,048
Key ETH resistance levels $2,113, $2,151, $2,205, $2,2,62, $2,300
Key ETH support levels $2,000, $1,917, $1,845, $1,773, $1,671

*Price at the time of writing

Ethereum has seen a solid week of trading as the cryptocurrency managed to surge by a total of 15% over the past week of trading. The cryptocurrency had started the month at around $1,920 as it started to push higher above the $2,000 level.

Since breaking $2,000, Ethereum managed to hold above the level as it set a new ATH price yesterday at $2,151. Despite setting a new ATH price, Ethereum failed to close yesterday’s daily candle above $2,113 (1.272 Fibonacci Extension) and ended up rolling over today to reach the current $2,060 level.

The recent price hike has now allowed the total balance of Ethereum on cryptocurrency exchanges to reach a new 20-month low as the liquidity available to purchase starts to dry up:

? #Ethereum $ETH Balance on Exchanges just reached a 20-month low of 14,605,497.262 ETH

Previous 20-month low of 14,606,142.639 ETH was observed on 05 August 2019

View metric:https://t.co/1dCpD2ey8E pic.twitter.com/ZRiHDQd1Bw

— glassnode alerts (@glassnodealerts) April 5, 2021

On top of that, the total number of Exchange Outflow Volume also reached a 1-month high as 20,422 ETH left all exchanges over the past month:

? #Ethereum $ETH Exchange Outflow Volume (7d MA) just reached a 1-month high of 20,422.908 ETH

View metric:https://t.co/LzFffVHu6i pic.twitter.com/lZmXoZ9EDC

— glassnode alerts (@glassnodealerts) April 4, 2021

These two measures indicate that investors are starting to buy up Ethereum at an aggressive pace and then are choosing to remove their tokens from exchanges as they have no intention of selling them anytime soon. It is likely that the ETH is leaving exchanges and is heading directly into cold storage to keep the digital assets secured.

Further data shows that over 400,000 ETH left Coinbase just a few days ago. That is worth around $800 million:

400k $ETH flowed out from Coinbase a few days ago.

Speculative guess, institutions are now buying $ETH.https://t.co/ix1AV5IFOm pic.twitter.com/cYaaHkBgFf

— Ki Young Ju 주기영 (@ki_young_ju) April 2, 2021

This type of outflow suggests that it is a large institution that is likely to be purchasing the Ethereum and then sending them out to cold wallets to be kept safe. It seems that institutions might be eyeballing Ethereum as their next investment.

If this is true, we can expect some significant price increases in Ethereum to the same level to which they managed to cause Bitcoin to break above $60,000 over the past few months of trading.

Ethereum remains ranked in the 2nd position as it currently holds a $238 billion market cap value.

Let us continue to take a look at the markets and see where they might be heading.

Ethereum Price Analysis

What has been going on?

Taking a look at the daily chart above, we can see that Ethereum rebounded from support at $1,548 (.618 Fib Retracement) toward the end of March as it began to climb higher. By the beginning of April, Etheruem managed to break the previous ATH prices above $2,000.

Over the past few days, Ethereum has been trapped within a range between $2,151 and $2,000. The ATH at $2,151 was set yesterday, and the support at $2,000 is provided by a short term .236 Fibonacci Retracement level.

The cryptocurrency would have to break this current range bound trading to dictate the next direction forward for the market.

Ethereum price short term prediction: Bullish

Etheruem continues to remain bullish right now. It would need to break back beneath $1,773 (.618 Fib Retracement) to turn neutral again. It would have to continue further beneath $1,500 before being in danger of turning bearish in the short term.

If the sellers push lower, the first level of support lies at $2,000 (.236 Fib Retracement). This is followed by $1,917 (.382 Fib Retracement), $1,845 (.5 Fib Retracement), $1,800, and $1,773 (.618 Fib Retracement).

Where Is The Resistance Toward The Upside?

On the other side, the first level of resistance lies at $2,114 (1.272 Fib Extension level). This is followed by $2,151 (ATH Price), $2,205 (1.414 Fib Extension level), and $2,262.

Additional resistance lies at $2,336 (1.618 Fib Extension), $2,400, and $2,500.

What has been going on?

Against Bitcoin, Ethereum has also been performing pretty well as it managed to break above the March highs. The coin reached resistance at ₿0.0361 (bearish .382 Fib Retracement) during the week but has since dropped beneath it as it now trades at ₿0.0357.

Ethereum price short term prediction: Bullish

The break above the March high has allowed Etheruem to be considered bullish. The coin would need to drop beneath ₿0.0337 (May 2019 HDC) to be considered neutral and would have to continue beneath ₿0.03 to be in danger of turning bearish.

If the sellers push lower, the first level of support lies at ₿0.035. This is followed by ₿0.0337 (May 2019 High-day closing price), ₿0.032 (200-day EMA), ₿0.0315, and ₿0.035.

Where Is The Resistance Toward The Upside?

On the other side, the first level of resistance lies at ₿0.0361 (bearish .382 Fib Retracement). This is followed by resistance at ₿0.038 (bearish .5 Fib Retracement), ₿0.04 (bearish .618 Fib Retracement), and ₿0.0406.

Above this, resistance is located at ₿0.042, ₿0.0426 (bearish .786 Fib Retracement), ₿0.044, and ₿0.0452.

Keep up to date with the latest ETH price predictions here.

Previous ETH analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of Ethereum:

  • Ethereum Price Analysis - ETH Surges 21% This Week As ATH Approaches, $2,000 Coming Soon? (Bullish)
  • Ethereum Price Analysis - ETH Rebounds But Is Showing Weakness Against Bitcoin After Falling Beneath Descending Triangle (Bullish)
  • Ethereum Price Analysis - ETH Drops Into $1,742 Support After Pushing Above $1,900 - Will The Support Hold? (Bullish)


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