Ethereum (ETH), the leading altcoin by market capitalization, saw a nearly 5% surge, reaching $4,618. This increase comes in the wake of favorable macroeconomic developments, even after prior bearish warnings from certain analysts. Savvy investors were quick to recognize these trends, with early alerts about the potential rise shared by a CryptoQuant analyst.
What Triggered Ethereum’s Latest Spike?
CryptoQuant analysts pointed to distinct patterns in professional investor behavior as an early indicator of ETH’s potential upswing. Their focus remained on the $4,300 level, predicting further upward momentum that manifested in the subsequent price movements observed.
How Did Data Drive the Forecast?
Analyzing on-chain transactions, the CryptoQuant analyst underscored strong demand within the $4,300-$4,400 bracket, where 1.7 million Ethers were accumulated. This zone emerged as a decisive accumulation point, reaffirming the rising trend, as these costs were below the prevailing price level.
Further supporting this analysis, exchange net flow data revealed significant outflows from major exchanges, most notably Binance, which led in Ethereum outflow volumes.
“Additionally, examining exchange net flow data suggests a period marked by outflows from central exchanges. Among all exchanges, Binance leads in Ethereum outflow volume within this range.”
Examining these elements, the robust interest between $4,300 and $4,400 was driven by 1.7 million ETH, confirming an optimistic market sentiment at those prices.
Interestingly, ETH withdrawals from Binance highlighted a $3,150 cost base, differing from other platforms. Binance’s role as a central hub for long-term investors reinforced its importance in these dynamics. These insights led analysts to expect the recent upward movement, which ultimately took place.
Moving forward, should opposing trends arise at Binance, potential risks to Ether’s value may surface. Currently, optimism prevails, with aims for $4,700 bolstered by positive ETF entries. Market projections remain upbeat with the anticipated Federal Reserve rate cut later in the month, signaling potential continued gains, barring unforeseen surprises.
