For the first time since September 27, Ethereum has crossed the $2,700 threshold and is demonstrating robust signs of sustaining its upward trend. Approximately ten days ago, ETH dipped below $2,400, leading to speculation that the cryptocurrency might find it challenging to rebound.
Nevertheless, in the past week, ETH has broken through crucial resistance levels. This on-chain analysis by BeInCrypto highlights how this upward movement could propel the price even further.
Ethereum Experiences Lower Selling Pressure
One metric supporting this forecast is the Ethereum Exchange Netflow, which tracks the amount of coins entering and exiting exchanges. As per CryptoQuant, market players have withdrawn 29,378 ETH from exchanges as of the current update.
From a spot trading viewpoint, elevated values usually indicate heightened selling pressure. However, with around $80 million being withdrawn, it implies that ETH may not encounter considerable selling pressure soon.
On the derivatives front, this decline signifies low volatility, suggesting that traders with open positions are less likely to experience liquidations. Taken together, this prevailing condition could be favorable for Ethereum’s price.
Read more: Ethereum ETF Explained: What It Is and How It Works
Another indicator bolstering the positive outlook is the number of addresses holding ETH valued at $1 million or more. An increase in this metric suggests that HODLers are accumulating more coins, depicting bullish sentiment. Conversely, a decrease signals that long-term holders are cashing out, generally indicating bearish sentiment.
According to Glassnode’s data, the number of addresses holding ETH worth $1 million and above has risen, indicating that Ethereum’s price might steer clear of another downturn.
Crypto analyst and MN Consultancy founder Michaël van de Poppe shares a similar perspective. However, in his observation, van de Poppe pointed out that ETH must surpass $2,770 to have any opportunity to exceed $3,000.
“Ethereum might truly be on the verge of a reversal. Breaking the significant resistance at $2,770 would be fantastic. If that occurs, the next target is $3,200,” the analyst underscored.
ETH Price Forecast: Bulls Need to Protect $2,689 Support
An analysis of the daily chart indicates that Ethereum’s price has broken out of a symmetrical triangle. For reference, a symmetrical triangle is a chart pattern characterized by two converging trendlines connecting a series of sequential peaks and troughs.
Typically, when an asset’s price drops below the triangle, it tends to decline further. In ETH’s case, the opposite is true, implying that the value may continue rising. However, for this to materialize, bulls must defend the $2,689 support level.
Furthermore, an increase in buying pressure is necessary to push the price above the resistance at $2,989. If this happens, ETH’s price could soar to $3,316.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
Nonetheless, this theory could be invalidated if ETH dips below the aforementioned support line. In such a case, the price could fall to $2,471.
Disclaimer
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