Despite facing hurdles, Ethereum (ETH) has the potential for price increases. Currently, ETH is priced at $2,411.
Concerns have recently emerged regarding a potential bear cycle for ETH. While this could be a possibility, an on-chain analysis indicates strategies that could prevent substantial losses for the cryptocurrency.
Ethereum Shows Robust Support
Using the In/Out of Money Around Price (IOMAP) metric, which categorizes addresses based on profit, loss, and break-even points, it is noted that market participants have accumulated 52 million coins at an average price of $2,345.
This volume surpasses that of purchases made between $2,349 and $2,703. Generally, higher volumes at specific price points exert a more substantial effect on price trends. If there is a larger volume of holdings at a loss, ETH may encounter resistance as these holders could sell to recover their investment.
Conversely, an increased volume at a profit reflects strong support, as holders are less inclined to sell at a lower price. Therefore, ETH enjoys notable support around $2,345, which could facilitate a price increase, potentially reaching $2,800.
Read more: How to Purchase Ethereum (ETH) Using a Credit Card: Complete Guide
Another indicator supporting this perspective is Ethereum’s Chaikin Money Flow (CMF), which evaluates the balance between accumulation and distribution.
A rising CMF signifies that accumulation is overtaking selling pressure, while a decreasing CMF suggests increased distribution. The daily chart shows the CMF entering the positive zone, indicating that intensified buying pressure could assist Ethereum in recovering from recent losses and pushing its price upward.
ETH Price Forecast: Increasing Demand
In the daily timeframe, Ethereum (ETH) has risen from $2,225 to $2,421, indicating a steady upward trajectory that suggests further potential price increases.
The chart below indicates a supply zone around $2,700, which might serve as a resistance point. However, the $2,400 area is established as a significant demand zone for ETH, enhancing the likelihood of the altcoin exceeding the resistance level at $2,581.
Furthermore, the sell wall near $2,744 bolsters the prospects for ETH to continue its upward movement. If ETH successfully navigates these obstacles, its price could ascend to $2,800, and potentially $2,991.
Read more: Ethereum (ETH) Price Forecast 2024/2025/2030
Nonetheless, traders should remain vigilant regarding potential market fluctuations. If the broader market shifts from a bullish to a bearish trend, this projection may no longer be applicable. In that case, ETH’s price could decline to $2,114.
Disclaimer
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