Brewing Ethereum Rally or Just an Internal Shuffle?

Find out why ETH bulls may soon have a reason to celebrate.

The price of Ethereum (ETH) has once again fallen below the $3,800 level, but several factors indicate the potential for a significant price recovery. One of these is the decrease in the number of tokens stored on cryptocurrency exchanges.

On the other hand, some analysts warn that the asset may be poised for a sharper pullback in the short term.

Switch to self-guarding?

X’s famous analyst, Ali Martinez, open 200,000 ETH has been withdrawn from cryptocurrency exchanges in the past 48 hours alone. The US dollar equivalent of the stash is approximately $770 million (calculated at current rates).

This development indicates that investors have abandoned centralized platforms and moved their holdings into self-custodial wallets, thus reducing immediate selling pressure.

Earlier this week, the total amount of ETH stored on cryptocurrency exchanges fell to a nine-year low of around 15.8 million coins, while today’s number is very close to that level.

It is important to note that Martinez provided another clarification on this matter. Only recently, he male 230,000 ETH tokens were transferred by major holders (possibly exchanges) in the past week. This step may include withdrawals, deposits, internal transfers, or other operations that differ from other developments.

Separately, Ethereum’s Relative Strength Index (RSI) stands clearly on the upside (at least so far). The technical analysis tool, which measures the speed and magnitude of recent price changes, is just north of 30, putting it close to oversold territory and poised for a potential rally. Conversely, ratios higher than 70 indicate that the asset is overbought and is considered bearish relative to the price.

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Do or die for ETH

As of press time, Ethereum is trading at around $3,800, down 5% on a daily range and 8% over the past month. User Mentioned The drop is below $4,000 after that Fed decision To lower interest rates in the United States and Trade talks between the United States and ChinaConsidering this “a classic bear trap or the cryptocurrency market is declining.” Kamran Asghar also participated, imagine Possible drop to $3,400-$3,500 before a renewed rise.

Others, like Max Crypto, were more optimistic. Prediction A “bullish only” scenario where ETH will explode to a new all-time high of $7,000. According to the analyst, the recent performance of the asset resembles its pre-pump situation in May this year, which was followed by a significant rally soon after.

Meanwhile, whales achieved a 100% win rate. Recently opened Long positions in ETHWhich sparked speculation that they might know something we don’t.