Ethereum is on a Rise – Why is $3,300 Crucial for Bulls?

Ethereum has now firmly established itself above the hard-won $3,000 mark. Given how the market has reacted to the digital asset’s recent surge, this suggests another bull rally for the digital asset. More money is pouring into the digital asset daily as investors vie for a piece of the profits. This is demonstrated by the exchange inflows and outflows, which demonstrate a clear buy and accumulate trend among these investors.

Ethereum Outflows are Surging

ETHEREUM, like its counterpart BITCOIN, has been on an outflow trend over the last week. This pattern has resulted in more digital assets leaving exchanges than coming in. In addition, Glassnode Alerts publishes daily reports on exchange inflows and outflows, indicating that Ethereum investors choose to withdraw their coins from exchanges and store them in safer, personal wallets.

Daily exchange outflows had consistently outpaced inflows over one week. In one week, a total of $5 billion in Ethereum was transferred into exchanges. In comparison, outflows totaled $6 billion in total, leaving exchanges. This means that 20% more ETH is leaving exchanges than is being moved in to be too sold.

It demonstrates that investors have been stockpiling tokens over the last week. However, there has recently been a break in this streak. As markets open on Monday, ETH’s accumulation trend has reversed.

In the early hours of Monday, Glassnode Alerts reported that exchange inflows had surpassed outflows. On the daily chart, exchanges saw $441 million in ETH flow in, while only $418 million flowed out, for a net flow of +$22.8 million.

It is too early to tell whether this is a new trend. However, this makes sense given that investors who have been holding through the consolidation period will want to realize some profits now that the price has risen significantly.

Ether (ETH/USD) is on the Rise

Ethereum has had one of the best runs of the weekend rally. The digital asset, which had been struggling to stay above $3,000, has finally received the boost it requires to shake off the effects of the bears. This propelled it to new heights, with a soft landing above $3,300.

The digital asset’s short-term trends have all turned bullish with this recent move. Investors’ buy pressure has risen to 92 percent as the cryptocurrency prepares to test the next significant resistance level, above $3,500.