Ethereum’s price slowed slightly this weekend after the collapse of negotiations between the United States and Iran. However, the latest on-chain data suggests that this moment of uncertainty has had little impact on the market structure of the second-largest cryptocurrency by market capitalization. According to a prominent analyst, Ethereum price appears to be at an inflection point, which could usher in a new bullish cycle.
ETH may be near a major uptrend
In a Quicktake post on the CryptoQuant platform, CryptoOnchain revealed that significant amounts of Ether tokens have flowed out of Binance, the world’s largest cryptocurrency exchange by trading volume. This on-chain observation is based on the 365-day Simple Moving Average of Ethereum Exchange Netflow on Binance.
According to CryptoOnchain, this metric has been steadily declining, recently falling to its lowest level since May 2024. This trend tends to be a bullish indicator for prices, as it suggests investors are taking their assets off exchanges and into self-managed wallets for long-term investments.
However, the highlighted metric has historically proven to be a reliable leading indicator of significant macroeconomic price movements. As you can see in the chart below, the Ethereum Exchange Netflow’s 365-day Simple Moving Average has historically fallen to an extreme low, followed by an upward reversal that has often coincided with the start of major Ethereum bull rallies.
CryptoOnchain noted that this repeating pattern strongly indicates an ongoing accumulation phase for Ethereum. “When net flows on a long-term moving average reach an extreme low, it typically signals that investors are withdrawing assets from exchanges for long-term investments, dramatically reducing immediate selling pressure on the market,” the expert wrote in the Quicktake post.
Furthermore, the crypto analyst said that, if history were to repeat itself, the current formation of a bottom could lay the structural foundation for the next major upward macro trend for the Ethereum price. CryptoOnchain told market participants to keep a close eye on this measure for a “decisive upward turn” to confirm the start of a new bullish cycle.
Ethereum price overview
At the time of writing, ETH’s price is around $2,353, reflecting a drop of more than 3% in the last 24 hours. While the altcoin crumbled due to the closure of the Strait of Hormuz, the past day’s action wasn’t enough to completely erase the past week’s gains. According to data from CoinGecko, Ethereum price is still up about 2% over the past seven weeks.