Category: Crypto News, News

ETH Loses Key Support Despite Increasing Exchange Outflows

By Published On: June 13, 20241.8 min readViews: 1200 Comments on ETH Loses Key Support Despite Increasing Exchange Outflows

Ethereum price is down 0.75% following huge exchange outflows and hawkish statements from the Federal Open Markets Committee (FOMC) which decided to leave rates unchanged on June 12.

Despite Ethereum’s recent dip, investors have been accumulating with more ETH tokens taken out of centralized exchanges over the last few days. This accumulation activity may be due to bullish events on the horizon like the expectation of spot ETH ETF market debut in the coming weeks.

Data from market intelligence firm CryptoQuant reveals that about 460,000 ETH valued at $1.6 billion at current rates was withdrawn from centralized exchanges between June 9 and June 11. This marks the fifth time in 2024 that the exchanges have seen a single-day outflow of more than 400,000 ETH, signifying a highly bullish momentum for Ethereum.

ETH Loses Key Support Despite Increasing Exchange Outflows

Bitcoin: Outflows from all exchanges. Source: CryptoQuant

ETH price technical analysis

Ethereum is trading around $3,491at the time of publication on June 13. The price had risen 5.6% to $3,657 after United States Consumer Price Index (CPI) data came at 3.3%, lower than the 3.4% analysts’ expectations.

The price then turned down sharply following the hawkish stance taken by the FOMC which chose to leave interest rates unchanged at the 5.25%-5.50% range.

The 100-day exponential moving average (EMA) provides immediate support at $3,499. A daily candlestick close below this level would spell doom for the smart contracts token that could drop first toward the 200-day EMA at $3,330 and later to the major support at $3,278.

Lower than that, the price may drop to collect the demand side liquidity below the said level to seek solace from the $2,860 support floor. This is where Ether’s downside could be capped representing an 18% drop from the current price.

ETH/USD daily chart. Source: TradingView

This negative outlook was supported by the downward trend of the relative strength index (RSI). The price strength at 43 reinforced the bears’ grip on the price.

Conversely, if bulls manage to defend the support provided by the 100-day EMA, they may push the price of Ether higher, first toward the 50-day EMA at $3,633 and later toward $4,000.

 

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