Ethereum’s price fell slightly over the weekend after negotiations between the United States and Iran broke down. However, the latest on-chain data suggests that this moment of uncertainty has barely impacted the market structure of the second-largest cryptocurrency by market capitalization. According to a prominent analyst, Ethereum’s price appears to be at a turning point that could usher in a fresh bullish cycle.
ETH may be close to a major uptrend
In the Quicktake post on the CryptoQuant platform, CryptoOnchain revealed that significant amounts of Ether tokens are flowing from Binance, the world’s largest cryptocurrency exchange in terms of trading volume. This on-chain observation is based on the Ethereum Exchange Netflow 365-day plain moving average on Binance.
According to CryptoOnchain, this indicator has been steadily dwindling, most recently reaching its lowest level since May 2024. Typically, this trend is often a bullish price indicator as it suggests that investors are withdrawing their assets from exchanges into self-hedging wallets for long-term storage.
However, the featured indicator has proven to be a reliable leading indicator of significant macroeconomic price changes in the past. As you can see in the chart below, whenever the Ethereum Exchange Netflow 365-day plain moving average has dropped to extremely low levels in the past, it has been followed by an upward reversal, often coinciding with the beginning of major Ethereum bull runs.
CryptoOnchain noted that this repeating pattern strongly indicates an ongoing accumulation phase for Ethereum. “When net flows reach extremely low levels on the long-term moving average, it usually means that investors are withdrawing their assets from exchanges for long-term storage, thereby drastically reducing the immediate selling pressure in the market,” the expert wrote in a Quicktake post.
Moreover, the cryptocurrency analyst mentioned that if history were to repeat itself, the current bottom formation could lay the structural foundations for another major upward macrotrend in Ethereum’s price. CryptoOnchain told market participants to closely monitor the indicator for a “decisive upward move” to confirm the beginning of a fresh bullish cycle.
Etherum Price Overview
At the time of writing, ETH is trading at around $2,353, reflecting a decline of over 3% in the last 24 hours. While the altcoin fell following the closure of the Strait of Hormuz, the actions of the last day were not enough to completely wipe out last week’s rally. According to CoinGecko data, Ethereum’s price has still increased by about 2% over the past seven weeks.
