Ethereum Price Surges to $2,500 as Major Exchange Inflows Raise Concerns

Ethereum Price Prediction: Will ETH Fall to $2,275 or Bounce Back to $2,840?

Ethereum Price Prediction – Ethereum (ETH) recently experienced a significant price jump, reaching $2,500—much to the relief of holders who had been watching the altcoin struggle. However, as the price surged, investors took advantage of the uptick by moving 163,840 ETH to exchanges over the last 24 hours, leading to concerns about Ethereum’s ability to retest the $3,000 mark. This on-chain activity raises questions about ETH’s near-term trajectory.

Massive Exchange Inflows Could Signal Selling Pressure

The large inflows of Ethereum to exchanges began on September 18 and have continued as the price reacted positively to the recent Federal Reserve rate cut. According to data from IntoTheBlock, in the last 24 hours, a whopping 163,840 ETH—worth more than $400 million at current prices—has been sent to exchanges. This marks the highest level of inflows since January 23, when 567,390 ETH flowed into these platforms.

Such significant inflows often indicate that holders are looking to lock in profits, which could lead to increased selling pressure on the cryptocurrency. Historically, major inflows have coincided with price declines. For example, following the January inflow surge, ETH’s price dropped from $2,454 to $2,217 within just a few days. If a similar pattern occurs, Ethereum may see a short-term decline in its price.

MVRV Momentum Points to Potential Pullback

Another key indicator suggesting a possible pullback is Ethereum’s Market Value to Realized Value (MVRV) momentum, which utilizes the 180-day Simple Moving Average (SMA) to detect uptrends and downtrends. Positive MVRV momentum is typically marked by green bars, indicating that investors purchased large volumes below the current price, signaling further upside potential. However, ETH’s current MVRV momentum is negative (red), as holders have acquired substantial volumes above the $2,546 mark. This suggests that Ethereum could still face distribution pressure from profit-taking investors.

Ethereum Price Prediction: A Retracement Ahead?

Despite the recent bullish recovery that pushed Ethereum to $2,554, the price is facing technical resistance. The Bollinger Bands (BB) indicator shows that ETH has reached the upper band, indicating that the altcoin is currently in overbought territory. Typically, hitting the upper BB band signals a potential pullback, especially when volatility is high, as is the case now.

Adding to this, the market has identified a significant supply zone around $2,745, which may act as a barrier to Ethereum retesting $3,000. Should the current selling pressure continue, ETH’s price could retrace to around $2,275 in the short term. On the flip side, if Ethereum breaks above the upper BB band, this bearish outlook might be invalidated, allowing ETH to push towards $2,840.

Conclusion: ETH Faces Uncertainty Amid Large Inflows

Ethereum’s latest price surge has resulted in significant exchange inflows, which could point to a short-term pullback as investors take profits. While technical indicators like the Bollinger Bands and MVRV suggest potential downside risks, the market remains volatile. If Ethereum can break through its current resistance levels, a move toward $2,840 may be on the horizon, but for now, caution is advised as the price could retrace to $2,275.

This pivotal moment for ETH highlights the delicate balance between bullish momentum and the selling pressure created by large inflows. Investors will need to closely monitor market conditions as Ethereum navigates this volatile phase.

FAQ: Ethereum Price Surge and Exchange Inflows