First, Ethereum has successfully closed above the 200-period Simple Moving Average (SMA) on the 3-day chart — a historically reliable signal that has preceded strong upward movements in the past.

The critical 200-SMA level currently sits at $2,700, and Ethereum is now trading just below this threshold, suggesting a pivotal moment for the market.

Second, on-chain data shows that nearly 1 million ETH have been withdrawn from exchanges over the past month.

According to Glassnode data shared by Ali, the ETH balance on exchanges dropped from over 18 million to roughly 17 million in 30 days. This substantial outflow typically indicates reduced selling pressure and rising investor confidence, as large holders move their tokens to cold storage for long-term holding.

Together, these signals — a bullish technical crossover and a significant decline in liquid exchange supply — suggest that Ethereum could be preparing for a breakout.

If price action sustains above $2,700, it could ignite the next leg of the altcoin rally, reinforcing ETH‘s growing dominance in the market.

As momentum builds, traders will be watching for confirmation of the breakout and potential targets beyond $3,000.

The post Ethereum Signals Strong Bullish Momentum as Exchange Supply Shrinks appeared first on Coindoo.

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Filed under: Bitcoin - @ May 15, 2025 2:17 pm