ETH outflows from exchanges hit new ATH and signal “buy-dip” sentiment

The 70% rally in ETH price returned to early October but unfortunately ended with a general market correction earlier this week. However after data The big players are still actively accumulating on-chain at lower prices.

ETH outflow increased sharply

According to the outflow indicator, traders and investors are now moving ETH off the exchanges at an unprecedented rate. The outflow volume reached over $ 100 million – a record for the Ethereum network.

Volume of ETH outflows from the exchange | The source: Glass knot

The previous ATH was reached in the summer. However, after the market correction, ETH lost 55% of its value. The bearish cycle resulted in increasing cash inflows into the ground, suggesting selling pressures.

As the market began to recover, the outflow from the floor increased and the owners chose to hold positions rather than sell them. Based on recent data, traders have not yet started selling, which could be a strong positive signal for the market.

How is the market reacting to the decline?

While some pundits are calling it top for a variety of reasons, including executing massive sell orders from the Ethereum Foundation, which is believed to be a fundamental leading indicator, market sentiment does not seem to be entering the panic episode phase.

Source: TradingView

According to on-chain data, ETH’s 9% correction is due to technical market conditions that are considered overbought after 48 days of profits.

ETH price could increase by 300% by the end of 2021

In a recent Twitter thread, Real Vision founder Raoul Pal predicted that ETH price could go from 100% to 300% by the end of the year.

“The ETH chart is now magically similar to that of BTC in 2017 and actually predicts this sell-off correctly…. by date and price. What will happen next? A 300 percent rally. As of tomorrow”.

The source: Raoul Pal

The former CEO of Goldman Sachs thinks a moon price is possible, but also emphasize nothing is safe.

“Well, I don’t expect perfection, but with all of the other analysis I’ve done, it’s very likely that there will be a 100% to 300% rally by the end of the year. Nothing is safe. After that it will be more difficult to predict, but I think it may take time and the price is significantly higher. “

Pal’s prediction is based on a fractal pattern (a pattern that has happened every now and then) that shows that ETH is acting like Bitcoin’s bull run in late 2017. He described it as “strange magic” in September.

Although ETH is currently 12.8% below its record high, Pal believes the second largest altcoin will soon return to bullish mode.

In September, Pal predicted that ETH would hit $ 20,000 by March 2022.

grandfather called the second largest cryptocurrency accounts for 70% of its portfolio in October, while Bitcoin only has a modest 5% in it.

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