Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is gaining significant attention due to its promising bullish momentum. The digital asset is showing signs of a potential rally, driven by favorable on-chain metrics and a strategic shift in holdings by large investors and whales. A substantial amount of ETH has been moved off exchanges over the past week, indicating strong accumulation interest.
Decline in Ethereum Exchange Reserves
The on-chain analytics firm CryptoQuant has reported a notable reduction in Ethereum’s exchange reserves, which have decreased from $42 billion to nearly $38.5 billion. This $3.5 billion drop suggests that whales and investors are strategically accumulating ETH, potentially preparing for future price gains. The decline aligns with a crucial support area where Ethereum is currently trading, further reinforcing the asset’s bullish sentiment.
Technical Analysis and Key Levels for Ethereum
Expert technical analysis highlights Ethereum’s bullish trajectory, as it navigates within a bullish channel pattern. The cryptocurrency is forming higher highs and higher lows, currently trading near the pattern’s lower boundary. With historical data and price corrections in mind, there is a strong probability that Ethereum could ascend by 12%, reaching the resistance level of $2,800. This level not only acts as resistance but also aligns with the 200-day Exponential Moving Average (EMA) and the bullish channel’s upper boundary. However, sustaining this bullish view hinges on Ethereum maintaining a price above the critical $2,400 support level.
Encouraging On-Chain Metrics
Ethereum’s optimistic outlook is bolstered by strong on-chain metrics. Data from Coinglass reveals that ETH’s long/short ratio stands at 1.36 over the past four hours, reflecting robust bullish sentiment among traders. Additionally, 57.76% of top traders have taken long positions, while 42.24% have opted for short positions. Open interest in Ethereum has risen by 4.9% over the past 24 hours and 3.1% in the last four hours, indicating growing interest from traders, leading to the formation of new positions. These metrics suggest that bulls are currently in control and may continue to drive Ethereum’s upward momentum.
Current Price Momentum
As of the latest updates, Ethereum is trading near the $2,520 mark, experiencing an upward rally of 1.20% in the past 24 hours. During this time, trading volume has surged by 90%, highlighting heightened interest and activity from traders and investors, signaling a potential further rally in Ethereum’s price.
