Ethereum traded at $3,500 on Tuesday after roughly 700,000 ETH left centralized exchanges over the past month, according to on-chain data tracked by Mister Crypto. The token dropped 2% in 24 hours but maintained a 3% weekly gain as traders weighed whether the sustained outflow pattern signals reduced selling pressure or reflects broader repositioning among large holders.
Key Market Insights
- •Approximately 700,000 ETH has been withdrawn from centralized platforms over the past month, marking a sharp reduction in exchange supply.
- •Ethereum held support between $3,000 and $3,400, where some whales accumulated near $3,200, though 23 top holders sold or restructured positions last week.
- •Technical indicators show conflicting signals, with Elliott Wave analysis pointing to potential movement above $6,000 while MACD momentum has faded.
Exchange Supply Declines Amid Persistent Withdrawals
Ethereum's exchange balance dropped steadily over recent weeks as netflow data revealed consistent outflows from centralized platforms. The withdrawals occurred in multiple large transactions, creating a pattern that analysts typically associate with long-term storage or movement to self-custody wallets.
Brief periods of inflows appeared during this timeframe, but these deposits remained small and failed to reverse the dominant trend. The reduction in available exchange supply often correlates with decreased immediate selling pressure, though it does not guarantee price appreciation.
Traders monitor exchange balances because lower supply on platforms can amplify volatility when demand shifts.
The price held within a range of $3,000 to $3,400 during much of this period. Previous reports indicated that certain whale wallets began accumulating Ethereum when it reached $3,200. If this support zone remains intact, some analysts project targets between $4,500 and $4,800.
However, not all large holders acted uniformly. Ali Martinez reported that 23 of Ethereum's top wallets either sold holdings or restructured their positions within the past week.
This divergence between accumulation and distribution created uncertainty about near-term directional bias.
Technical Patterns Present Mixed Signals
The Long Investor shared analysis showing a five-wave Elliott pattern that could place Ethereum in its final upward wave. The pattern follows a bounce from the 200-day moving average and a breakout above a descending channel structure. This technical framework suggests a potential move above $6,000 if the pattern completes.
Ali Martinez examined weekly data that showed weakening momentum.
The MACD indicator crossed below its signal line, a bearish development that often precedes consolidation or downward movement. The price returned to a zone where it previously traded sideways.
CRYPTOWZRD noted that Ethereum closed below $3,550, which now serves as immediate resistance. A break beneath this level could trigger movement toward $2,800. Conversely, a climb above $3,640 might lead to a retest of $3,890. Current intraday price action remains closely tied to Bitcoin's broader market direction.
Understanding Key Market Indicators
Exchange netflow measures the difference between deposits to and withdrawals from trading platforms. Negative netflow indicates more assets leaving exchanges than entering, which traders interpret as potential accumulation behavior. The 200-day moving average serves as a long-term trend indicator, with prices above it generally considered bullish.
Elliott Wave theory attempts to identify market cycles through five-wave patterns, with the fifth wave typically representing a final push in the prevailing trend direction.
MACD, or Moving Average Convergence Divergence, tracks momentum by comparing two moving averages. When MACD crosses below its signal line, it suggests weakening upward momentum.
Support and resistance levels mark price points where buying or selling pressure historically concentrated. Breaks above resistance can trigger further gains, while failures to hold support often accelerate declines.
Concluding Observations
Ethereum's price trajectory hinges on whether it can reclaim resistance at $3,550 and sustain movement above $3,640. The substantial exchange outflows suggest some holders removed assets from immediate selling circulation, but the mixed behavior among top wallets complicates the narrative. Technical patterns point to competing scenarios, with bullish Elliott Wave projections contrasting against fading MACD momentum. Near-term movement will likely continue tracking Bitcoin's performance while testing established support and resistance zones.