Ethereum Price Targets $3,000 as Investors Move $500M ETH into Long-Term Storage

Ethereum Price Analysis:

• Ethereum (ETH) price reached $1,950 on Thursday, November 9, as the bulls extended monthly gains to 8%. 
• Ethereum investors have moved $505 million worth of ETH into long-term storage this week, signaling they are positioning for more gains than book profits. 
• Technical analysis indicators show that the bulls are still in firm control despite monthly ETH price gains edging closer to double-digits.

Ethereum (ETH) price hit $1,950 on Thursday morning as the bulls made another audacious attempt at the elusive $2,000 resistance. On-chain analysis beams the spotlight on the major drivers behind ETH’s most recent price bounce.

Ethereum Investors Moved 263,520 ETH into Long-Term Storage This Week

After a brief consolidation phase, ETH price finally broke above the $1,900 resistance on November 9. But despite ETH’s monthly gains climbing toward 8%, Ethereum holders’ on-chain activity this week suggests that majority of the current investors are targeting much larger gains.  

According to data from IntoTheBlock, ETH has recorded a negative Exchange Net-flows has in last 7 consecutive trading days. A closer look at the chart below shows that investors have now shifted 263,520 ETH from crypto exchange wallets into long-term storage, between November 3 and November 9. 

Exchange Netflows represents the difference between total outflows and new inflows into crypto exchange wallets on a given day. Essentially, a negative Netflow value indicates that investors are coins out of exchanges and into self-custody have exceeded those making new deposits. 

A persistent drop in exchange deposits as observed on the ETH network this week implies that most investors are opting to HODL their ETH assets long-term rather than seek out short-term profit opportunities on exchanges. 

The 263,520 ETH outflows from exchanges this week is worth approximately $505 million, when valued at the current prices of $1,920. Evidently, this large reduction in the number of coins readily available to be traded across crypto exchanges, has impact Ethereum prices positively this week. 

In summary, ETH holders shifting their coins into long-term storage this week have been pivotal to Ethereum’s price bounce on Thursday. If this trend persists and demand remains strong, Ethereum price will likely smash through the $2,000 resistance in the coming days. 

ETH Price Forecast: $3,000 Could Be the Next Target

From an on-chain perspective, ETH holders shifting their coins into long-term storage this week have been pivotal to Ethereum’s price bounce on Thursday. If this trend persists and demand remains strong, Ethereum price will likely smash through the $2,000 resistance in the coming days. 

Meanwhile, the daily timeframe technical analysis indicators also affirms this bullish stance. 

As of November 9, Ethereum price is trading at $1,920, Ethereum Exponential Moving Average (EMA-30) stands at $1,773, whereas the Simple Moving Average (SMA-20) is at $1,729. 

Both the EMA-30 and SMA-30 averages are positioned below the current Ethereum price range, signaling a prevailing short-term bullish sentiment. 

However, if the bulls seize the momentum as predicted, ETH will face initial resistance situated at the upper Bollinger band around $1,950. However a decisive break out from that level could see ETH price reach a new 2023 peak closer to the $3,000 area. 

Conversely, the bears could invalidate that bullish prediction if ETH fails to defend  the initial support level at the $1,670 lower Bollinger band.

Although, unlikely due to the current level of decline in market supply, but a larger downswing below that support level could open the doors to further reversal toward $1,500.