"ETH Leaving Exchanges"...Ethereum, Signal of Entering 'Quiet Accumulation Phase'

▲ Ethereum (ETH) / ChatGPT generated image

Significant changes are being detected in the Ethereum (ETH) market. As 'on-chain signals' – more crucial than price movements – repeatedly appear, the interpretation that the market is already preparing for the next upward cycle is gaining traction.

According to recent reports from crypto media outlet NewsBTC, Ethereum is currently analyzed to have entered a typical 'Accumulation phase'. The key evidence is the exchange netflow indicator. Based on the long-term moving average, this indicator has fallen to an extreme low, which is similar to patterns observed just before major bull runs began in the past.

The meaning of this indicator is clear. It means that investors are moving Ethereum from exchanges to external wallets. In other words, it is a signal that the willingness to hold for the long term is strengthening rather than selling in the short term. As the amount of assets that can be immediately sold in the market decreases, selling pressure naturally lowers.

This trend has been repeated in the past. Whenever exchange netflow hit a long-term bottom, Ethereum's price often transitioned into a rebound. Analysts are weighing the possibility that the current structure is also a similar 'pre-transition phase'.

Even within the market, this signal is not seen as a mere technical movement. The dominant interpretation is that this is a period where large investors are quietly accumulating assets. Indeed, the outflow of assets from exchanges directly correlates with a 'decrease in immediate selling intent', which has served as a foundation for mid-to-long-term price increases.

However, short-term price movements still involve volatility. Recently, Ethereum has faced short-term downward pressure, but it is evaluated to still maintain an upward foundation in the mid-term trend.

The key is a 'confirmation signal'. Experts emphasize that rather than concluding the current phase as the start of an uptrend, it is necessary to observe whether a decisive rebound signal appears. In particular, the analysis suggests that the point at which on-chain indicators turn upwards again is likely to be the starting point of a new bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*