The price of Ethereum slowed somewhat this weekend after negotiations between the United States and Iran failed. However, the latest on-chain data suggests that this moment of uncertainty has barely had an impact on the market structure of the second largest cryptocurrency by market capitalization. According to a prominent analyst, Ethereum price appears to be at a turning point, which could pave the way for a new bull cycle.
ETH Could Be Close to a Major Uptrend
In a Quicktake article on the CryptoQuant platform, CryptoOnchain revealed that significant amounts of Ether tokens were flowing 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. Typically, this trend is often a bullish price indicator, as it suggests that investors are moving their assets from exchanges to self-custody wallets for long-term holding.
However, the highlighted metric has historically proven to be a reliable leading indicator of significant macroeconomic price movements. As shown in the chart below, whenever the 365-day simple moving average of Ethereum Exchange net flow fell to extremely low levels in the past, it was followed by an upward reversal often coinciding with the start of Ethereum’s major bull rallies.
CryptoOnchain noted that this repeating pattern strongly indicates an ongoing accumulation phase for Ethereum. “When net flows reach extremely low levels on a long-term moving average, this generally indicates that investors are withdrawing their assets from exchanges to hold them for the long term, thereby significantly reducing immediate selling pressure in the market,” the expert wrote in the Quicktake post.
Furthermore, the crypto analyst mentioned that, if history were to repeat itself, the current formation of a bottom could lay the structural foundation for the next major upward macroeconomic trend in Ethereum price. CryptoOnchain has asked market participants to closely monitor this metric for a “decisive upward pivot” to confirm the start of a new bull cycle.
Ethereum Price Overview
At the time of writing, the ETH price stands at around $2,353, reflecting a decline of over 3% in the last 24 hours. While the altcoin collapsed following the closure of the Strait of Hormuz, the previous day’s action was not enough to completely erase last week’s gains. According to data from CoinGecko, the price of Ethereum has increased by around 2% over the past seven weeks.
