Can ETH pull off a strong bounce back as exchange balances reach 4-year lows?

Can ETH pull off a strong bounce back as exchange balances reach 4-year lows?

February 13, 2023

By Michael Nderitu

How much are 1,10,100 ETH worth today?

ETH bears are losing momentum after a strong pullback in the last few days.

ETH exchange balances reach 4-year lows as outflows continue.

Ethereum’s native cryptocurrency just concluded the week with a sizable bearish pullback. There is more directional uncertainty as a result, but multiple indicators and metrics may offer some much-needed clarity.

For perspective, ETH’s $1534 price tag represents a 9% pullback within the last five days.

A couple of things to note about the price action- The pullback puts it within the 50% RSI level and the bears seem to have lost most of their momentum at this level. In addition, the outflows indicated by the MFI are leveling out.

More importantly, ETH’s 50-day Moving average recently crossed above the 200-day MA from below, forming a golden cross. The latter is a bullish sign, hence this may yield bullish expectations among investors.

Do ETH bulls have a chance to regain dominance?

Some of ETH’s on-chain metrics are leaning in favor of bullish expectations. The latest Glassnode alerts reveal that the cryptocurrency has been flowing out of exchanges. ETH’s balance on exchanges tanked to a 4-year low of 18,946,696.667 ETH.