In the past 9 days, approximately 1.09 million Ethereum (ETH) has been withdrawn from centralized exchanges. With the current Ethereum price around $2,600, this capital outflow amounts to $2.9 billion. Additionally, the Relative Strength Index (RSI) for the ETH/BTC pair on the monthly timeframe has entered the overbought zone for the first time, indicating a potential reversal in Ethereum’s downtrend and a recovery rally. Ethereum’s price recently bounced back from the $2,500 support level and has surged by 7% in the last two days, currently sitting around $2,700. This growth coincided with the withdrawal of 1.09 million ETH from exchanges, signaling reduced selling pressure. Furthermore, on-chain data and technical analyses have issued multiple buy signals for Ethereum, reinforcing the likelihood of the downtrend coming to an end. One crucial indicator in this regard is the Market Value-to-Realized Value (MVRV) ratio over a 365-day period, reflecting the profits and losses of investors who bought Ethereum in the past year. This indicator reached -17.48% on February 7, indicating long-term investors are at a loss. The last time this ratio dropped to 13.80% or lower was in September 2024, followed by Ethereum’s price growing by 88% in four months, reaching $4,000. Meanwhile, the RSI for the ETH/BTC pair has also plummeted into the oversold zone, suggesting heightened negative sentiments towards this pair at its peak, which is usually not sustainable. If Ethereum’s price improves, this ratio can strengthen. If the uptrend continues, the next resistances will be at $2,683 and $3,306, and surpassing these levels could push Ethereum’s price to $4,000 and even $5,000.
