Amid ongoing challenges in the crypto industry, the overall crypto market appears to be stagnant. Over the last six weeks, Ethereum has been observed trading within a narrow range, resulting in the number of Ethereum deposits reaching a monthly low of 838.083K. The previous monthly low was around 839.202K, observed on September 11, 2023.
Source: Glassnode Ethereum’s exchange activity and cold wallet movement
Recently, data from Santiment, an on-chain analytics firm, revealed that Ethereum experienced its largest outflow of 110,000 ETH, valued at $181 million, from exchanges since August 21, 2023. Meanwhile, the non-exchange Ethereum supply reached an all-time high of 115.88 million Ethereum, while the amount on exchanges hit a 5.5-year low. This data suggests that investors may be moving their Ethereum to cold wallets in response to the recent launch of the Ethereum Ethereum.
#Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
However, it has also been observed that the recent introduction of Ethereum Future-based ETFs in the U.S. did not receive the strong response that was anticipated. These ETFs have low trading volumes, which is in stark contrast to the launch of the ProShares Bitcoin Strategy ETF in 2021, which had a much more impressive start.
Ethereum’s demand for trading seems weak, with the new ETFs attracting minimal trading activity. K33 analysts have noted that the launch of Ethereum futures ETFs failed to generate much enthusiasm, even though CME traders attempted to front-run their launch.
Technical analysis and price outlook
From a technical analysis perspective, Ethereum has broken down from an ascending triangle pattern on the weekly time frame, signaling the potential for bearish momentum. Currently, ETH is consolidating within the range of $1,564 and $1,747.
Source: TradingView
This consolidation zone is crucial because if it closes below $1,530, there is a high probability of a significant downward move towards $1,000. However, breaching this consolidation zone is challenging because the lower level of consolidation also serves as support for the 200 EMA on the weekly time frame.
Presently, Ethereum is trading near $1,628, reflecting a positive change of 1.05% in the last 24 hours. It’s worth noting that it has a market cap of approximately $196.7 billion and a trading volume of around $7.3 billion over the past 24 hours.
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