Ethereum has had a challenging start to the year, shedding 15% from its recent local highs and dropping to a low of $3,157. The decline of the altcoin leader comes amid increased volatility and uncertainty in the market, with many investors re-evaluating their positions after the recent sell-off. However, despite the downturn, data on the chain suggests that investor sentiment remains strong.
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According to data from IntoTheBlock, Ethereum saw significant flows from exchanges this week, with net outflows exceeding $1.4 billion – the highest level since November. Such activity often signals strong accumulation trends as investors move their holdings off exchanges and into cold storage or other wallets, indicating long-term confidence in the asset.
These substantial outflows reinforce Ethereum's resilience even amid challenging price action. Analysts are closely watching whether these rallying movements can counter the bearish trend and trigger a recovery in the coming weeks.
With Ethereum trading near critical support levelsthe next moves will be crucial in determining the path of its price in 2025. Since bullish seasonality for altcoins often starts in the later years, many believe that Ethereum could be the t – his upward path to recover soon, depending on the market and broader macroeconomic conditions. factors.
Ethereum is preparing for a rebound
Ethereum has recovered signs after the recent fall, now trying to break above the $3,300 level. The altcoin leader has faced major challenges, with a 15% decline from its recent highs weighing on bullish sentiment. However, key on-chain metrics indicate that Ethereum's fundamentals remain strong, pointing to potential growth in the coming months.
Data from IntoTheBlockshared on X, shows a significant development: this week saw $ETH net flows from exchanges exceed $1.4 billion, the highest level since November. Such outflows often indicate that investors are moving their holdings off exchanges, a behavior usually associated with hoarding. This trend suggests that, despite recent bearish price action, confidence in Ethereum's long-term potential remains intact.
Although Ethereum's recent price action may appear too low to some, these rallying trends provide strong support for the asset. Historically, large exchange flows have preceded significant price rallies, as lower sell-side liquidity can move up when demand increases.
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As Ethereum works to regain higher levels, a break above $3,300 could signal the start of a more sustained recovery. With strong fundamentals and growing investor confidence, Ethereum appears well positioned for a potentially bullish 2025.
Testing weekly demand
Ethereum is trading at $3,250, showing an ongoing struggle to break above the $3,300 resistance level. The price action remains uncertain as ETH tests critical weekly demand levels. This area has historically provided strong support, and if Ethereum manages to close above the $3,100 mark, it could pave the way for a meaningful rebound in the coming days .
The current level of consolidation indicates a market looking for direction. For bulls to regain control, Ethereum must break above key resistance levels. Retrieving the $3,750 mark is crucial to confirm a bullish breakout and a possible upside. Such a move would not only restore investor confidence but also position ETH to reconfirm higher levels as market trends.
However, failure to hold the $3,100 demand area could lead to lower pressure, with lower support levels likely to be tested. The upcoming sessions will be very important as Ethereum navigates these key levels.
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With broader market sentiment in flux, ETH's ability to stay above its critical support zones will determine whether a bullish trend emerges or a prolonged consolidation phase continues. Investors are watching closely as ETH tries to establish its next significant move.
Featured image from Dall-E, chart from TradingView
