1.8 mln Ethereum purchased – Can rising demand push ETH to $2.9K?

• There has been a major decline in ETH exchange reserves as accumulation soars.
• Korean traders are leading the buying activity this time around, as key metrics show.

The recent developments, including massive Ethereum [ETH] accumulation, have yet to be reflected on the chart, as the asset has declined another 1.47% in the past 24 hours. 

This added to the bearish momentum over the last month.

AMBCrypto’s analysis showed that ETH could rally soon, and this ongoing accumulation could ignite a major market surge, particularly if other key metrics stay within the bullish zone marked on the chart.

Massive outflow as demand grows

According to IntoTheBlock, demand for ETH has hit a new high over the past week, as exchange netflow data indicates that a total of 1.8 million ETH were purchased and moved into private wallets.

This marked the highest net outflow since December 2022.

Typically, such a major outflow is associated with rising demand for ETH, as investors consider the current price level a discount, prompting strategic buys.

The implication is that prices tend to trend higher following such events, as evidenced on the chart.

Further analysis suggests that the current demand for ETH could be driven by Korean investors, who are actively buying the asset as the Korean Premium Index begins to rise.

Currently, the index has a reading of 3.2—a considerably higher metric than the selling level below 0—confirming that there is more ETH buying activity on Korean exchanges than on others.

A broader outlook on global positioning in the derivatives market shows more long contracts, meaning traders are betting on a price rally.

At the time of writing, the Taker Buy/Sell Ratio has moved into the buying zone for the first time since March 3, now at 1.019.

This buying activity reinforces confidence in the market, as both spot and derivative traders are aligned in accumulating the asset.

Impact of buying momentum on the chart

ETH is now trading within a bullish pattern marked by descending trendlines and Fibonacci levels. In the past, ETH has attempted to break out from this level on two occasions, both resulting in failed attempts.

The confluence of spot and derivative market activity this time around could provide the necessary catalysts, as it coincides with the asset trading off a support level at $1,988.30.

The outcome of this rally could push the price toward $2,635. However, with no major resistance ahead, ETH could see a significant jump to $2,900, surpassing a key liquidity cluster.

During this rally, ETH may experience slight pullbacks at the Fibonacci levels marked on the chart.

Overall, the current demand and buying momentum suggest that ETH is poised to resume its bullish trajectory, with the asset eyeing $2,900.