Ethereum eyes mini breakout above $3K as Coinbase ETH outflows hit new record
Ethereum's native token Ether (ETH) is poised for a mini bull run above $3,000 primarily due to a classic bullish reversal pattern on its shorter-timeframe chart, and a huge spike in ETH outflows from Coinbase.
ETH's price has been forming a falling wedge pattern since late March 2022, which raises its prospects of undergoing a breakout move in May.
Falling wedges appear when the price trends lower inside a range defined by two descending, contracting trendlines.
As a rule of technical analysis, these wedges resolve after the price breaks out of their range to the upside and rises to a level at length equal to the maximum distance between the pattern's upper and lower trendline when measured from the breakout point.
The maximum falling wedge height is around $395. Suppose ETH's price closes above $2,850, the potential breakout point, accompanied by an increase in trading volume, its likelihood of rising by another $395 (toward $3,150) will be higher.
The interim upside outlook in the Ether market coincides with bullish on-chain data.
Notably, the number of ETH leaving Coinbase, the second-largest crypto exchange by volume, reached its highest level on May 3, data from CryptoQuant shows.
$ETH Coinbase Outflow hits an all-time-highLive Chart https://t.co/PiITw2ZFf3 pic.twitter.com/tlFQndUhvQ
Simultaneously, the ETH balance on all the crypto exchanges fell on May 3 to its lowest level since August 2018, according to one of Glassnode's on-chain metrics.
Both indicators imply a surge in traders' preference to hold Ethereum tokens over trading them for other assets.
They also coincide with a recent recovery in the upside sentiment of small Ether traders, namely an increase in the number of addresses that have a minimum balance of 0.1
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