Ethereum Records Surge in Outflows Amid Market Pullback

Investor Accumulation and Undervaluation Signal ETH’s Potential

Amidst a slight market pullback, Ethereum saw a significant milestone as its outflows surged to over $1 billion, a level not seen since May 2023. This uptick in outflows coincided with a drop in price from $3.4k, prompting investors to accumulate ETH in anticipation of a potential price increase.

Accumulation Trend Indicates Bullish Momentum

The data from Hyblock Capital highlighted a spike in Ethereum’s buy volume when its price dipped below $3.4k, showcasing investor interest in buying the dip. This trend was further supported by ETH’s price surge of nearly 3% in the last 24 hours, reaching $3,117.03 at the time of writing.

Moreover, indicators suggest sustained buying interest in Ethereum, with low net deposits on exchanges and a positive Coinbase premium indicating strong buying sentiment among U.S. investors. Whale activity around ETH also remained high, correlating with previous bull rallies.

Positive Indicators Point to Continued Uptrend

Ethereum’s NVT ratio showed a sharp decline over the past two weeks, signaling that the asset may be undervalued and poised for a price hike in the near term. Additionally, the MA cross indicator suggests a potential uptrend, with ETH likely to test resistance at $3.38k. However, a pullback to $3k could lead to a further decline to $2.7k.