ETH sees mini-breakout above $3,000 after Coinbase’s ETH outflows hit new record levels as macro headwinds continue to hamper long-term upside prospects, so let’s read more in our latest Ethereum news today.
Ethereum’s native token ETH is poised for a mini-bull run above $3000 due to the bullish reversal pattern on the shorter timeframe and a huge spike in outflows from Coinbase. ETH price has been forming a falling wedge pattern since late March, raising the prospects of a breakout move in May. The falling wedges seem to appear when price trends are falling within the range defined by the descending and contracting trend lines. As a rule of technical analysis, the wedges dissolve after the price breaks out of the range to the upside and rises to a new level, which is the maximum distance between the pattern’s upper trend line and the lower trend line measured from the breakout point.
$ETH Coinbase Outflow hits an all-time high
Live Chart 👇https://t.co/PiITw2ZFf3 pic.twitter.com/tlFQndUhvQ
— CryptoQuant.com (@cryptoquant_com) May 4, 2022
The height of the falling wedge is around $395. So, if the price surges above $2850, there are chances that the breakout point will rise another $395 towards $3150 and will be higher. The preliminary upside outlook for the market coincides with bullish on-chain data. The number of ETH leaving Coinbase hit its highest level, according to data from CryptoQuant. ETH balances on crypto exchanges fell to their lowest level since 2018, according to Glassnode’s on-chain metrics, bringing both indicators together Increase in traders’ preference implied holding ETH tokens rather than trading them against other assets.
ETH sees a mini-breakout as balances on retail addresses tick higher and price trends lower, suggesting traders bought ETH at local lows, further supporting the bullish falling wedge reversal setup. Ether’s probability of surpassing $3,000 hasn’t snapped it out of the long-term bearish setup as ETH is at risk of breaking below this triangle range of Q2/2022 and the downside target is between $1,820 and $2,670 depending on the breakout point.
Further downside healing came from macro fronts, with rivals like BTC still showing a positive correlation with US stocks. The US Federal Reserve is set to release a policy statement, followed by Chair Jerome Powell’s press briefing, and officials signaled they will raise interest rates by 0.5% with plans to unwind its $9 trillion asset portfolio.
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