- On Thursday, the ETH outflow on centralized exchanges surpassed over $1.2 billion.
- The Ethereum technical chart forms a cup-and-handle pattern hinting at a higher bullish breakout.
On Thursday, September 16, the world’s second-largest cryptocurrency rallied all the way to the $3,700 level amid renewed market optimism. As of now, Ethereum continues to hold above the major support of $3500.
Ethereum on-chain fundamentals continue to gain major strength. As per data from IntoTheBlock, a staggering $1.2 billion worth of ETH was withdrawn from the centralized exchange in a matter of 24 hours on Thursday. This was a new record high in terms of Ethereum short-term outflows in a short span.
The data provider notes that last time the ETH exchange outflows surpassed $1 billion, the ETH price skyrocketed by 60 percent in the next 30 days. Thus, if this happens again, Ethereum will be trading at a new all-time high above $5,500 and into the price discovery zone.
The net amount of $ETH leaving exchanges just hit a new record
Over $1.2B worth of $ETH left centralized exchanges yesterday
— IntoTheBlock (@intotheblock) September 16, 2021
Ethereum (ETH) has rallied significantly over the last month since the London hardfork upgrade in early August. The upgrade introduced the ETH burning mechanism making the Ethereum blockchain network deflationary.
In the last 42 days since the hardfork, 309,505 Ether worth more than $1 billion has been burnt in total. The Ethereum burning rate as of now is 5.05 ETH per minute. Since the London hardfork, the daily average stands at $26 million per day.
The biggest contributor to the ETH burn rate is the NFT marketplace OpenSea. It alone contributes to more than 14% of all ETH burnt.
Ethereum going to $6500
As per the technical charts, Ethereum (ETH) holds every possibility of surging to $6,500 levels. Popular market analyst Peter Brandt recently shared the technical chart for LTC showing a cup and handle formation.
Responding to it, popular market analyst Raoul Pal said that Ethereum has a similar formation on the technical charts. The “cup and handle” usually follows a bullish price trend if we witness a breakout above the handle.
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The depth of the ETH/USD cup is currently at $2.437. If this trading pair retests the levels of $4,112 resistance and gives a bullish breakout above this, the ETH price can surge as high as $2,437. This will trigger another ETH run-up to $6,549 levels. Usually, the cup and handle patterns have a success rate of nearly 65 percent to 68 percent.
In a report published earlier this month on September 7, banking multinational giant standard Chartered discussed the economic use case for Ethereum. The banking giant predicted that the ETH price can go $26,000–$35,000 in the future. The report further noted:
The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns, although it could raise more complex security issues.
Timelines for ETH 2.0 rollout could slip, but in the near term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide price cushion.
Furthermore, the strong going DeFi and NFT activity on the Ethereum blockchain has attracted several market players to the platform. Several Ethereum-alternatives as well are currently gaining prominence in the market.