Even as Ethereum’s (ETH) price continues to face downward pressure and recent trends have some observers doubting the asset’s potential, holders of the cryptocurrency seem to be acting on the belief that now is a good time to buy. During the past week, 1.2 billion worth of ETH was taken off of exchanges, the highest amount seen since December of last year. This kind of movement is traditionally seen as a signal that investors expect an asset’s price to appreciate. $1.8 billion worth of $ETH left exchanges last week, the highest weekly amount since December 2022. Despite ongoing pessimism around Ether prices, this trend suggests many holders see current levels as a strategic buying opportunity. pic.twitter.com/ti4Vxka7LV — IntoTheBlock (@intotheblock) March 10, 2025 Strategic Buying Opportunity or Short-Term Risk? Ethereum’s price has seen considerable consolidation in recent weeks, with many traders and investors speculating about its future direction. While the broader market sentiment has been cautious, the $1.8 billion outflow suggests that a large portion of Ethereum holders are not looking to sell at current prices. Instead, they are moving their Ethereum off exchanges and holding long-term. This behavorial pattern oftentimes signifies confidence in Ethereum’s long-term prospects, as investors prefer to store their tokens in private wallets rather than leave them exposed to exchange risks. Holders of such a large sum of ETH believe that the current market conditions present a buying opportunity. With Ethereum’s price still far from its previous all-time highs, some investors likely view this as a strategic entry point. This could be especially true for those who expect a rebound in the near future. Of course, this trend doesn’t mean that the holders aren’t. A broader analysis of market conditions could just as easily lead one to view this as a premature entry given the downward trend in the broader market. Despite the long-term positivity surrounding Ethereum, price weakness and market uncertainty recently triggered short-term volatility. In the past 24 hours, for instance, $230 million worth of long positions in ETH were liquidated. That’s a 4.18% drop in the leverage taken on long positions over just 24 hours. Of course, not all traders use leverage, and plenty of traders have raked in profits recently from simply shorting. But using leverage makes the kind of market ETH is currently seeing even more unpredictable. Over $230 million in #Ethereum $ETH long positions were liquidated yesterday, shaking out overleveraged traders! pic.twitter.com/MP9uR7DsDt — Ali (@ali_charts) March 10, 2025 Ethereum Consolidating Within a Descending Triangle Ethereum’s chart is revealing one of the most remarkable technical patterns forming today: a descending triangle, which is usually a signal to traders that the coin is about to break out of its current period of consolidation. Even in times like these, when half the crypto world is selling and the other half is buying, the price of Ethereum seems to be consolidating. Whatever direction it ultimately breaks out in, there will be strong price movement. If it breaks upward, it could lead to a price increase of as much as 18%. Should Ethereum’s price succeed in breaking key resistance levels, a major recovery could be around the corner. That’s the way many investors see it right now, with their eyes set on not-too-distant upside price targets. But if Ethereum instead keeps following this downward path, there’s the real potential for not-too-distant price targets that are heading much lower. What’s at risk here and what could be in store for Ethereum’s price in the near term? Although the market is unstable, the descending triangle pattern frequently shows that the market is poised, biding its time for a catalyst that will send it in more of a clear-cut direction. As it emerges from this lull, Ethereum could make one of two major moves: it could push upward and leave behind a bunch of resistances that have been a hassle for it and go on to be a price surge, a price pump (if you will), which would also be a nice Christmas present for a lot of people who hold Ethereum. Ethereum could also collapse downward. Outflows from Ethereum ETFs and Institutional Sentiment Ethereum’s exchange outflows are large, but the vehicle used for institutional investment is clearly also undergoing some change. From March 3 to March 7, Ethereum spot ETFs had a net outflow of $120 million. This is a clear sign that the institutional side of the investment spectrum is not at ease with where Ethereum is currently trading. They are taking action that highlights their conservatism and probably their inability to predict where Ethereum is headed next. Last week (March 3 to March 7, ET), Bitcoin spot ETF had a net outflow of US$799 million; Fidelity ETF FBTC had a net outflow of US$201 million; Ethereum spot ETF had a net outflow of US$120 million. https://t.co/YanotfbWiJ — Wu Blockchain (@WuBlockchain) March 10, 2025 The drains from Ethereum ETFs indicate that while long-term holders are extracting ETH from exchanges, the sentiment among institutions for Ethereum is still not very warm. This seems to suggest that the institutional investors, who usually have a lot more resources and heft to do the kind of deep analysis that leads to investment decisions, are still nibbling around the edges of Ethereum—not ready, for whatever reason, to make a more substantial commitment. These mixed signals – with large withdrawals from exchanges and significant ETF outflows – underscore the conflicting forces at play in Ethereum’s market. On one hand, retail and long-term holders seem confident in Ethereum’s future and are pulling their assets off exchanges. On the other hand, institutional investors are pulling back amid price uncertainty and volatility. The Road Ahead for Ethereum Ethereum is maintaining a triangle contraction, which is a less volatile form of price action. This is currently leading to the recruiting of a new Bitcoin-Ethereum bull run cohort of eager traders, even as mainstream attention is drawn to Ethereum’s upcoming transition to Proof of Stake. If Ethereum can break out of its present consolidation pattern and return to key price levels, it could mean the start of a recovery. In that case, Ether could push back toward its former highs. On the other hand, if the price refuses to rally through resistance and keeps sliding lower, it could mean Ethereum faces considerable further downside. – Consolidation can sometimes be for a long period. – The support and resistance sandwich are getting tighter. – The lower-bounding price is getting pushed down. In the end, the prevailing trends seem to suggest that Ethereum’s marketplace stands at a crossroads. Mixing the atmosphere of long-term holders accumulating while institutions exercise caution, Ethereum could go either way—consolidating or significantly moving in price one way or the other—in the next few weeks. If it continues moving sideways, our attention will be held by any upward or downward movement prompted by conditions both within the crypto marketplace and in the wider financial world. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: nexusplexus/ 123RF // Image Effects by Colorcinch
