Increasing Ethereum (ETH) outflows from crypto exchanges have strengthened expectations for an altcoin rally.$ETH
Bitcoin’s all-time high and increasing market dominance continue to put pressure on Ethereum. However, significant ETH withdrawals from exchanges have raised hopes that the price could continue its upward trend. As of this writing, Ethereum is trading at $39,750. So, will the price continue to rise? What does the on-chain data show?
On December 14, 108,521 ETH (approximately $418 million) was withdrawn from crypto exchanges. According to Glassnode data, this outflow was the highest single-day outflow of ETH from exchanges since March 13. Such an outflow of Ethereum is generally considered a positive sign, as it indicates that investors are choosing to hold on to their ETH rather than sell it. The reduced selling pressure creates a situation that can pave the way for higher prices.
ETH’s technical indicators are also giving positive signals for a price increase. Currently, Ethereum’s RSI is at 60.22. This shows that there is a healthy demand for the altcoin leader. When the RSI value rises above 70, it means that it has entered overbought territory and usually triggers price declines. Levels below 30 indicate an oversold situation and indicate the possibility of a price recovery.
The current RSI for ETH suggests that the price is trending higher but has not yet reached the overbought territory, suggesting that Ethereum has the potential for further upside.
