ForthefirsttimesinceSeptember27,Ethereumhassurgedpastthe$2,700markandisshowingstrongsignsofmaintainingitsupwardmomentum.Abouttendaysago,ETHdroppedbelow$2,400,sparkingspeculationthatthecryptocurrencymightstruggletobreakoutagain.
However,overthepastsevendays,ETHhassurpassedkeyresistancelevels.Inthison-chainanalysis,BeInCryptorevealshowthisupwardmomentumcoulddrivethepriceevenhigher.
EthereumSeesReducedSellingPressure
OneindicatorfuelingthispredictionistheEthereumExchangeNetflow,whichshowstheamountofcoinsflowinginandoutofexchanges.AccordingtoCryptoQuant,marketparticipantshavetaken29,378ETHoffexchangesasofthiswriting.
Fromaspottradingperspective,highvaluestypicallysignalincreasedsellingpressure.However,withapproximately$80millionbeingremoved,itsuggeststhatETHmaynotfacesignificantsellingpressureinthenearterm.
Onthederivativesside,thedeclinepointstolowvolatility,indicatingthattraderswithopenpositionsarelesslikelytofaceliquidations.Whencombined,thiscurrentconditioncouldbebullishforEthereum’sprice.
EthereumExchangeNetflow.Source:CryptoQuant
AnothermetricsupportingthebullishoutlookisthenumberofaddressesholdingETHvaluedat$1millionormore.Whenthismetricrises,itindicatesthatHODLersareaccumulatingmorecoins,reflectingbullishbehavior.Conversely,adeclinesuggeststhatlong-termholdersarecashingout,typicallysignalingbearishsentiment
BasedonGlassnode’sdata,thenumberofaddressesholdingETHworth$1millionandabovehasincreased,suggestingthatEthereum’spricecouldavoidgoingthroughanotherdrawdown.
EthereumNumberofAddresseswithHighBalance.Source:Glassnode
CryptoanalystandfounderofMNConsultancyMichaëlvandePoppesharesasimilarview.However,inhispost,vandePoppenotedthatETHneedstoriseabove$2,770tohaveanychanceofsurpassing$3,000.
“Ethereummightfinallyreverse.Breakingthroughthecrucialresistanceat$2,770wouldbegreat.Ifthathappens,thenexttargetis$3,200,”theanalystemphasized.
ETHPricePrediction:BullsMustDefend$2,689Support
AlookatthedailychartshowsthatEthereum’spricehasbrokenoutofasymmetricaltriangle.Forcontext,asymmetricaltriangleisachartpatterndefinedbytwoconvergingtrendlinesthatconnectaseriesofsequentialpeaksandtroughs.
Usually,whenanasset’spricebreaksbelowthetriangle,theasset’spricetendstofallfurther.ForETH,itistheotherwayaround,suggestingthatthevaluecouldcontinueclimbing.Butforthattohappen,bullshavetodefendthe$2.689support
Beyondthat,buyingpressureneedstoincreasesothepricecanclimbabovetheresistanceat$2,989.Ifthatisthecase,ETH’spricecouldrallyto$3,316.
EthereumDailyPriceAnalysis.Source:TradingView
However,thisthesiscouldberenderednullandvoidifETHfallsbelowtheaforementionedsupportline.Inthatscenario,thepricecouldtumbleto$2,471.
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