The cryptocurrency market witnessed a sharp surge in volatility this week following investor uncertainty raised around U.S. tariff policy. As a result, Bitcoin showcased a flash drop to $91K before reverting to $100k, while the Ethereum price plunged to $2,100 before reclaiming $2,800.
While market projection is yet to show bottom formation, the ETH price maintains resilience with a key reversal pattern and a surge in exchange outflow.
Key Highlights:
- Since June 2022, long-coming support has maintained a steady uptrend in Ethereum price.
- A long-wick rejection candle at $2,300 accentuates the high demand pressure and potential reversal point.
- A massive outflow of ETH from the crypto exchange hints at an active accumulation trend from buyers.
ETH Records $1 Billion Exchange Outflow After Market Dip
On February 3rd, the crypto market recorded a massive sell-off, which led Ethereum’s price to multi-month support at $2,800. However, the sellers couldn’t hold this value and the price reverted immediately to regain $2,850, projecting high demand pressure with long tail rejection.
According to Intotheblock data, over 350,000 ETH, valued at $1 Billion, withdrew from exchanges on Monday This marks the largest net outflow of Ethereum from exchanges since January 2024.
Such a massive withdrawal typically signals that traders seized the recent market dip as an opportunity to accumulate ETH.
Historically, large-scale withdrawals from exchanges often reflect reduced selling pressure.
Ethereum Price Nearing a Major Support
Since last weekend, the Ethereum price witnessed an accelerated selling which plunged its value from $3,331 to $2,720, registering a loss of 18%. This pullback now teases a breakdown below the support of a falling wedge pattern.
This chart structure carried the ongoing correction in ETH price within two converging trendlines. If the daily candle closes below the support trendline, the sellers could drive another 17.5% drop to hit a long-coming support trendline at $2,200,
Yesterday’s reversal candle bounced precisely from this support, indicating the buy-the-dip sentiment is intact.
The potential reversal could drive the ETH price back to $4,000.
