Ethereum (ETH) Price Prediction: Targeting $3,00 as Key Technical Indicators Flash Bullish Signals

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been gaining significant attention due to its recent price action.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been garnering significant attention due to its recent price action. As key technical indicators flash bullish signals, traders and investors are closely watching whether the cryptocurrency can sustain its momentum and rally toward the $3,260 mark.

At present, Ethereum has managed to reclaim the critical $2,350 level, igniting optimism that a stronger breakout could be on the horizon. At the time of writing, Ethereum is trading at approximately $2,203.57, with a realized price of $2,075.57.

Chart: Benzinga Pro

Examining Ethereum’s past price movements reveals that such breakouts are often followed by major rallies. For instance, Ethereum’s rise from $1,042 in August 2022 to $3,126 by August 2024 followed a similar technical pattern.

If this trend continues, Ethereum could see an impressive 48% increase from its current levels, potentially reaching $3,260 in the near future. However, sustaining the bullish momentum is crucial, as a failure to hold above $2,350 could trigger a correction back to lower support zones.

Key Technical Indicators Point to Bullish Ethereum

Multiple technical indicators are highlighting Ethereum’s bullish outlook. The cryptocurrency has encountered strong buying pressure at lower support levels, evident in the RSI values remaining above 30. This suggests that the selling pressure has eased, paving the way for a potential rebound.

Furthermore, Ethereum Exchange Outflows Indicate Strong Accumulation: One of the strongest indicators supporting Ethereum’s potential rally is the substantial outflow of ETH from centralized exchanges. On March 8, over $500 million worth of ETH was withdrawn from exchanges, reflecting strong accumulation by investors.

This trend indicates that traders are moving Ethereum into private wallets, reducing the available supply on exchanges and potentially driving prices higher.

Additional data from Glassnode reveals a notable increase in outflows over various time frames:

Over the past 72 hours, a total of 1.16 million ETH, valued at approximately $2.5 billion, has been withdrawn from exchanges.

Similarly, over the past 14 days, a staggering 3.6 million ETH, amounting to roughly $8 billion, has been withdrawn from exchanges.

A similar surge in outflows was observed on March 3, when 1 million ETH, valued at $2.4 billion, was withdrawn from exchanges.

Historically, such exchange outflows have preceded significant price increases. If this accumulation trend persists, Ethereum could soon push past the $2,600 resistance level before making a move toward $3,260.

Potential Risks and Downside Scenarios

Despite the bullish outlook, Ethereum is not without risks. If the price fails to sustain the key $2,350 level, it could experience a sharp correction of up to 34%, potentially revisiting the $1,444 support level. The market’s short-term sentiment remains a crucial factor in determining Ethereum’s next move.

Ethereum’s netflow analysis further highlights the shifting market sentiment. The net outflows peaked at -225.61K ETH on March 5, equivalent to approximately $540 million at the time. This suggests that investors are increasingly moving Ethereum off exchanges, a historically bullish signal.

However, if exchange inflows begin to rise significantly, ETH could face selling pressure, potentially pushing its price back to the $2,100 level.

Market Indicators to Watch

To gauge Ethereum’s next move, traders should monitor the following indicators:

If Ethereum manages to close a daily candle above $2,350 and break through the $2,600 resistance level, it could set the stage for a continuation of the bullish trend toward the next resistance at $3,260. A failure to hold above $2,350 could lead to a 50% retracement of the recent uptrend, potentially bringing the price back to the $1,444 support level.

Stay tuned for more crypto market analysis and insights.

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This article was originally published on Benzinga and has been modified and republished with permission.