For the first time since September 27, Ethereum has soared above the $2,700 milestone, showing strong signs of maintaining its upward momentum. About 10 days ago, ETH fell below $2,400, sparking speculation that the cryptocurrency would struggle to break out again.
However, over the past seven days, ETH has risen above major resistance levels. In this on-chain analysis, BeInCrypto reveals how this upward momentum could push the price even higher.
Ethereum, selling pressure decreases
One of the metrics driving this prediction is Ethereum exchange netflow, which measures the amount of coins entering and exiting an exchange. According to CryptoQuant, market participants have withdrawn 29,378 ETH from the exchange as of this writing.
From a spot trading perspective, higher values usually indicate increasing selling pressure. However, the removal of around $80 million suggests that ETH may not face significant selling pressure in the short term.
For derivatives, this decline indicates lower volatility, indicating that traders holding positions are less likely to face liquidation. Overall, this current situation could be bullish for Ethereum price.
Read more: Ethereum ETF explained: What is Ethereum ETF and how does it work?
Another indicator that supports the bullish outlook is the number of addresses holding more than $1 million in ETH. When this indicator rises, it indicates that HODLers are accumulating more coins, reflecting bullish behavior. Conversely, a decline suggests long-term holders are cashing out, which usually indicates bearish sentiment.
According to data from Glassnode, the number of addresses holding more than $1 million in ETH is increasing, suggesting that Ethereum's price may avoid further decline.
Michaël van de Poppe, crypto analyst and founder of MN Consultancy, shares a similar view. However, Van de Poppe said in his post that ETH needs to break above $2,770 to have a chance of breaking above $3,000.
“Ethereum may finally reverse. It would be great if it could break through the key resistance at $2,770. If that happens, the next target would be $3,200,” the analyst emphasized.
ETH Price Prediction: Bulls Must Defend $2,689 Support
Looking at the daily chart, we can see that the price of Ethereum is moving above a symmetrical triangle. For context, a symmetrical triangle is a chart pattern defined by two converging trend lines connecting a series of consecutive peaks and troughs.
Typically, when an asset's price falls below the triangle, the asset's price tends to fall further. The opposite is true for ETH, suggesting that its value may continue to rise. But for that to happen, bulls must protect the support at $2.689
Beyond that, buying pressure should increase to allow the price to climb above the $2,989 resistance. In that case, the price of ETH could rise to $3,316.
Read more: How to buy Ethereum (ETH) and everything you need to know
However, this theory could be invalidated if ETH falls below the aforementioned support line. In that scenario, the price could fall to $2,471.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.
