Ethereum Exchange Balance Turns Negative for First Time, Analysts See Bullish Signal

Ethereum (ETH) has reached a historic milestone as its exchange balance has turned negative for the first time. This indicates that more tokens are being withdrawn from trading platforms than deposited, signaling a potential bullish trend for ETH.

Key Developments

Ethereum's exchange flux is negative, suggesting reduced selling pressure and increased investor confidence.
Historically, rising exchange balances indicate selling pressure, while falling balances suggest coins are moved to private wallets, reducing liquidity.
Billions worth of ETH have been removed from centralized exchanges, coinciding with heightened demand and a target price above $5,500.
Market tops typically occur after inflows into exchanges rise, indicating Ethereum may be in an accumulation phase rather than a sell-off.
Long-term holders gaining control over supply could lead to upward price momentum.

Price Target Projection

Technical analyst Crypto Goos reports that ETH has broken out of a long-term wedge pattern, which had constrained price action since 2021.
The breakout level was around $3,600, and ETH is now significantly above this level.
Crypto Goos projects a potential price target of $7,000, implying a 62% increase from current levels above $4,300.
If momentum continues, ETH may exceed the $7,000 mark.