Ethereum Price Prediction: ETH Could Surge to $3,260, Reclaiming Key Levels and Exhibiting Resilience

Ethereum's price action has captured the attention of traders lately, with key indicators hinting at the potential for a strong upward move.

Ethereum's price action has been a hot topic among traders lately, with key indicators hinting at the potential for a strong upward move. In fact, the crypto has exhibited resilience, reclaiming critical price levels and demonstrating patterns that historically precede rallies.

This analysis explores the technical analysis done on the altcoin to identify the next price action.

Highlighting the pricing bands of the coin, traders noted that ETH broke above a crucial threshold.

"This breakout has implications for the next price move, as similar breakouts from the lower band have seen significant rallies in the past," the analysis stated.

According to the analysis by crypto analytics firm Glassnode, highlighted in the chaotic nature of the market.

"For instance, the breakout from the lower band around $1,042k in August 2022 saw a rally to $3,126k by August 2024, while the breakout from the upper band around $2,990k in December 2023 saw a drop to $1,444k by March 2024."

This pattern suggested that ETH's latest move alluded to accumulation and reduced selling pressure, optimistically hinting at a rally to $3,260, offering a potential 48% upside. However, failure to hold $2,351 could push ETH down to $1,444 – A possible 34% decline.

"The implication is that if the bulls can maintain control and clear the final resistance at $2,351, we might see a continuation of the uptrend towards the next target at $3,260. Conversely, if sellers return and break below the support at $2,351, we could retest the lower Fib level at $1,444."

Exchange withdrawal volume

Over $500 million worth of ETH was withdrawn from exchanges, indicating an uptick in accumulation among traders. The outflow volume chart on 8 March showed a 24-hour change of +70.29% - A 7-day change of -10.08% and a 30-day hike of +13.23%.

The outflow volume peaked on 3 March at 1 million ETH, valued at $2.4 billion, before decreasing to 400k ETH on 6 March. The sharp 24-hour surge reflected strong buying pressure, reducing the available supply on major exchanges.

This pattern varied drastically from February, where outflows remained relatively consistent over several days. The implication was that traders were actively removing ETH from exchanges, a move that usually signaled an intent to hold for the long term.

The 30-day trend reinforced the long-term accumulation pattern, often a precursor to price hikes. However, the 7-day decline pointed to short-term profit-taking, which could momentarily slow momentum.

This pattern was evident in early 2024 when outflows were followed by a 20% price jump. If outflows continue, ETH could move towards $2,600. Conversely, if selling pressure returns, ETH might retest $2,200 on the charts.

Bearish signals amid outflow trends

Ethereum’s netflow analysis highlighted shifting market sentiment.

Net outflows peaked at -225.61K ETH on 5 March, equivalent to $540 million at $2,400 per ETH, before reducing to -112.81K ETH the next day. The 7-day and 30-day netflow declines indicated ongoing accumulation, reducing the available supply on platforms like Coinbase and Kraken.

This trend varied significantly from January, showcasing a stark shift in favor of buyers. It was a reversal from December, where netflows remained positive for several months, suggesting greater selling pressure.

The implication was that traders were accumulating ETH, reducing liquidity on exchanges and potentially putting upward pressure on prices. This pattern was seen in February when a similar trend in outflow volume led to a 15% price rally.

If sustained, this trend could push ETH to $2,800. However, if inflows surge, selling pressure could push ETH to $2,100 – Signaling a possible reversal.

A bullish horizon for the altcoin?

At the time of writing, Ethereum's trajectory appeared bullish, driven by strong technical indicators and accumulation trends.

ETH was trading at $2,203.57, with projections hinting at a potential hike to $3,260 – Marking a 48% increase.

Exchange withdrawals also climbed to 400k ETH, valued at $960 million, while netflows remained negative and reinforcing reduced selling pressure.

Historically, ETH surged by 20% in 2024 following similar patterns