TL;DR

Ethereums supply on exchanges has dropped to its lowest point in roughly nine years, while spot ETF inflows remain solid. Analysts expect ETH to continue pumping, but the overbought RSI points to a potential cooldown.

Further Gains on the Horizon?

Ethereum (ETH) has been on the crest of the wave over the last month, with its price surging by 60%. Just a few hours ago, it climbed to roughly $3,940, the highest mark since December last year, whereas it currently trades at around $3,800 (per CoinGeckos data). 

The popular X user, Ali Martinez, revealed that during that timeframe, over one million ETH tokens had been withdrawn from crypto exchanges. The stash equals almost $3.9 billion (calculated at current rates)

More than 1 million Ethereum $ETH have been withdrawn from crypto exchanges in the past month! pic.twitter.com/rP18ToPz7V

According to CryptoQuants data, the total number of ETH stored on exchanges has dropped to roughly 19 million on July 27, which is the lowest level registered in almost a decade. This is typically interpreted as a bullish factor, as it suggests that investors have switched to self-custody methods, which reduces the immediate selling pressure. 

The massive capital flowing into spot ETH ETFs also supports the price momentum. Data compiled by SoSoValue shows that the daily netflows have been positive over the last several weeks, signaling solid interest from investors.

Spot ETH ETF Inflows, Source: SoSoValue However, some indicators should serve as warnings to investors. Ethereums Relative Strength Index (RSI), for instance, has neared 70, meaning the valuation has pumped too quickly in a short period of time. Readings above that level suggest the price might be headed for a short-term correction, while anything below 30 is viewed as a buying opportunity.

ETH RSI, Source: CryptoWaves

The Next Potential Targets

Numerous members of the crypto community believe ETH is ready to chart new peaks. The X user cyclop claimed the asset just doesnt give a chance to buy lower, describing this as the strongest sign of strength you can get. That said, they envisioned a parabolic move to as high as $4,800. 

For his part, Crypto Rover reminded that ETHs price pumped substantially following the previous two FOMC meetings. The next gathering of the Federal Reserve is scheduled for July 29 July 30, after which the central bank will announce its interest rate decision. 

According to Polymarket, there is a 95.5% probability that the benchmark will remain unchanged at 4.25%-4.50%, and we have yet to see whether this will have an impact on ETH and the broader crypto market.

Fed Decision in July, Source: Polymarket