This pattern suggests that Ethereum is in an accumulation phase. What are the next steps?
Ethereum price slowed somewhat over the weekend following the breakdown of negotiations between the United States and Iran. However, the latest on-chain data suggests that these moments of uncertainty have had little impact on the market structure of the second-largest cryptocurrency by market capitalization. According to a prominent analyst, the Ethereum price appears to be at a turning point that could start a new bull cycle.
ETH may be nearing a major uptrend
In a Quicktake post on the CryptoQuant platform, CryptoOnchain revealed a significant amount of Ether tokens are being leaked from Binance, the world’s largest cryptocurrency exchange by trading volume. This on-chain observation is based on the 365-day simple moving average of Binance’s Ethereum exchange Netflow.
According to CryptoOnchain, this indicator is showing a steady decline and recently fell to its lowest level since May 2024. Typically, this trend is often a bullish indicator for prices as it suggests investors are pulling assets from exchanges and into self-managed wallets for long-term holding.
However, the indicators highlighted have historically proven to be reliable leading indicators of important macroeconomic price movements. As you can see in the chart below, in the past whenever Ethereum exchange Netflow’s 365-day simple moving average fell to extremely low levels, it was often followed by a bullish reversal, starting a major Ethereum rally.
CryptoOnchain noted that this repeating pattern strongly indicates a continued accumulation phase for Ethereum. “When netflow reaches extremely low levels at long-term moving averages, it typically indicates investors are withdrawing assets from exchanges for long-term holding, significantly reducing immediate selling pressure in the market,” the expert wrote in a Quicktake post.
The cryptocurrency analyst also noted that if history repeats itself, the formation of the current bottom could lay the structural foundation for the next major upward macro trend in Ethereum price. CryptoOnchain told market participants to closely monitor this indicator for a “decisive upward pivot” to identify the start of a new bull cycle.
Ethereum price overview
As of this writing, the price of ETH is around $2,353, down more than 3% in the last 24 hours. With altcoins plummeting due to the closure of the Strait of Hormuz, last week’s measures alone were not enough to completely erase last week’s gains. Ethereum prices are still up about 2% over the past seven weeks, according to CoinGecko data.
