Over 300,000 ETH Withdrawn from Exchanges In 7 Days: Ethereum Preparing For $6,000?

Ethereum is struggling for traction as more ETH moves out of crypto exchanges. However, this could be a sign of an imminent Ethereum bull run if the right factors fall into place. 

Looking at the candlestick arrangement in the daily chart, there are pockets of strength, but there ought to be a strong printout for uptrend confirmation.

Ethereum Price Stuck In A Range

Overall, ETHUSDT is still stuck inside the bear range of Q3 2024, and bulls need to prove to the markets that they are in charge.

Although the consensus is that ETH is undervalued, not only must prices pull back strongly and breach $3,000, but this expansion ought to have decent engagement.

For now, this is missing.

Until there is a close above the bear range, risk-off traders can stay on the sidelines until there is a clear opportunity to load up.

While ETH price is struggling for momentum, market data points to a possible accumulation.

Over 300,000 ETH Moved From Exchanges

According to CryptoQuant data shared by one analyst on X, over 300,000 ETH were moved from top exchanges in one week.

With more coins moving from exchanges like Binance and Coinbase, it means more ETH is under the control of holders.

For now, it can’t be determined what exactly these holders are doing with their coins. They might be holding them on cold wallets like Ledger and Trezor or engaging in DeFi. In these protocols, they maintain control via MetaMask and other non-custodial wallets.

Overall, the more ETH moves from exchanges, the more scarce it becomes, which is a huge positive for buyers.

Technically, ETH has support at around the $2,300 and $2,400 zone.

The same analyst predicts that if bears fail to break below this level, ETH can easily float above $3,000 and all-time highs to over $6,000 in the coming months.

What Will Influence An ETH Bull Run To $6,000?

While ideal, the path to fresh all-time highs, way above March highs, will be shaped by multiple factors.

Top of the list will be how Bitcoin performs. In the last bull cycle that saw BTC breach $70,000, the leg up also formed the base for the ETH price to fly higher. As such, ETH and BTC rallied in the better part of Q4 2023.

If Bitcoin bulls lift off, breaking $74,000, the improving sentiment will also provide tailwinds for altcoins.

Beyond price action, inflows to spot Ethereum ETFs will shape prices. Despite the excitement of the United States SEC approving this derivative product, outflows far exceed inflows, weighing down bulls.

According to SosoValue , all spot Ethereum ETF issuers in the United States manage $6.8 billion worth of assets.

On October 25, there was a daily total net outflow of over $19 million, mostly from Grayscale’s ETHE redemptions.

Institutions didn’t buy any spot Ethereum ETF shares on October 25.

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