- Investors started to accumulate ETH when altcoin’s price dropped from $3.4k
- NVT ratio revealed that Ethereum was undervalued on the charts
Ethereum [ETH], the world’s largest altcoin, hit a new high on a particular front this week, a high unseen for more than a year. Notably, it happened while the market recorded a slight pullback on the charts.
Will this latest development change the scenario again in ETH’s favor?
Ethereum hits a milestone!
IntoTheBlock, recently shared a tweet revealing an interesting update. The tweet revealed that Ethereum recorded a massive hike in outflows last week. To be precise, the number exceeded $1 billion, which was a level last seen back in May 2023. The update also suggested that Bitcoin [BTC] also recorded a similar surge in outflows during the same time.
An increase in outflows means that accumulation is high. A possible reason behind this development could be ETH’s pullback from $3.4k. Hyblock Capital’s data also told a similar story as ETH’s buy volume hit 100 on 12 November.
This was the same day as when ETH’s price started to drop after hitting $3.4k. This suggested that investors were planning to buy the dip, hoping for a further price hike in the short term.
Source: HyblockCapital
In fact, that’s what happened over the last few days. After dipping to a support near $3k, ETH’s piece gained some bullish momentum. Its price surged by nearly 3% in the last 24 hours and at press time was trading at $3,117.03.
Additionally, investors seemed to be considering buying Ethereum, suggesting that its value could surge further. This trend of sustained buying was proven by ETH’s exchange netflows too.
According to CryptoQuant, the token’s net deposits on exchanges were low, compared to the 7-day average. Moreover, ETH’s Coinbase premium was also green, indicating that buying sentiment was strong among U.S investors.
Apart from this, whale activity around ETH also remained high. In fact, AMBCrypto reported previously that whale transactions surged in late October and early November, correlating with ETH’s bull rally.
Will this uptrend sustain itself?
The better news for investors was that Ethereum might as well manage to sustain this newly gained upward momentum.
The king of altcoin’s NVT ratio registered a sharp decline over the past 2 weeks. Whenever this metric drops, it means that an asset is undervalued – Hinting at a near-term price hike.
Source: Glassnode
Read Ethereum’s [ETH] Price Prediction 2024–2025
Finally, the MA cross technical indicator pointed out that Ethereum’s 9-day MA was resting well above its 21-day MA.
If the indicator is to be believed, ETH might continue its uptrend and soon hit its resistance at $3.38k. However, if ETH notes a pullback and falls under its support at $3k, the chances of it plummeting to $2.7k can’t be ruled out yet.
Source: TradingView
