Major Decline in ETH Exchange Reserves Amid Rising Accumulation

There has been a significant decline in ETH exchange reserves as accumulation surges, with Korean traders leading the buying activity.

Despite recent developments indicating massive Ethereum (ETH) accumulation, the asset has dropped by 1.47% in the last 24 hours, contributing to bearish momentum over the past month.

AMBCrypto’s analysis suggests that ETH may soon rally, with ongoing accumulation potentially igniting a major market surge if key metrics remain in a bullish zone.

Massive Outflow as Demand Grows

According to IntoTheBlock, demand for ETH has reached new heights in the past week, with exchange netflow data showing that 1.8 million ETH were purchased and moved into private wallets. This represents the highest net outflow since December 2022. Such a significant outflow typically indicates rising demand, as investors view the current price level as a discount, prompting strategic buys. Historically, prices tend to rise following such events.

Further analysis indicates that current demand for ETH is driven by Korean investors, as the Korean Premium Index has risen to a reading of 3.2, which is well above the selling level below 0. This confirms increased ETH buying activity on Korean exchanges compared to others.

A broader look at the global derivatives market shows an increase in long contracts, indicating traders are betting on a price rally. Currently, the Taker Buy/Sell Ratio has moved into the buying zone for the first time since March 3 at 1.019. This buying activity reinforces market confidence, as both spot and derivative traders align in accumulating the asset.

Impact of Buying Momentum on the Chart

ETH is currently trading within a bullish pattern characterized by descending trendlines and Fibonacci levels. In previous attempts, ETH has struggled to break out from this level, with two prior failed attempts.

However, the confluence of spot and derivative market activity this time could present the necessary catalysts for a breakout, coinciding with the asset trading off a support level at $1,988.30. A successful rally could push prices toward $2,635, with no significant resistance in sight, potentially leading to a significant jump to $2,900, surpassing a key liquidity cluster.

During this anticipated rally, ETH may experience slight pullbacks at Fibonacci levels on the chart. Overall, current demand and buying momentum suggest ETH is poised to resume its bullish trajectory, targeting $2,900.