Overview of the main elements:
- Ethereum sellers are exhausted, which suggests a rise in lessons.
- The whales accumulate large amounts of eth, which indicates a bullish feeling.
- A bullish crossing on the ETH/BTC graph supports the upward dynamics of Ethereum.
Ethereum shows signs of a potential price recovery while market conditions change. Recent data and technical signals indicate an upward perspective for the $ ETH, sellers running out and whales working to accumulate large amounts of cryptocurrency.
In addition, the main technical indicators suggest that the price of Ethereum could approach the $ 5,000 mark in the coming months.
The depletion of sellers announces a potential rebound
The current Ethereum market shows a clear sign of weakening the selling pressure. According to the graph, the net taker volume, which follows the purchase and sale pressure, reveals that the sales dynamics are weakening.
When this pressure fades, it creates an environment favorable to buyers who take control, which can lead to an increase in prices. The weakening of the sellers indicates that the market could be close to a floor, which would open the way to a rebound.
Market analysts suggest that the exhaustion of sellers is often a pioneer in the rise in prices. When sellers leave the market, buyers are starting to intervene, which pushes prices upwards. Ethereum approaching its levels of support and the decreasing sales activity, the prospects for the ETH $ become more positive. Analysts provide that if these conditions are maintained, Ethereum could go around $ 5,000.
The accumulation of whales indicates an increasing confidence
In addition to the exhaustion of Ethereum, we note a remarkable increase in the activity of whales in Ethereum. ETH holders with large wallets accumulate tokens, which testifies to their confidence in the long -term value of the room. It seems that the portfolios containing more than 100 ETH has increased their sales in recent days, which is a bull sign in the data.
Whale actions can have a considerable impact on the price of Ethereum. Once the market meets this demand, it tends to turn into higher prices. The truth is that even with the current market and price movements, whales continue to buy Eth, which means they see a big future for the price. If the whales continue to accumulate Ethereum, a greater number of these major holders can contribute to the demand of the cryptocurrency, which could increase the price.
The Haussier crossing of Ethereum supports the upper dynamic
Technically, the price of Ethereum compared to Bitcoin shows a strong upward dynamic. As you can see on the graph, Ethereum displays a bullish crossing between two key mobiles, which indicates that the currency is about to make a breakthrough. A bullish crossing occurs when a smaller mobile average meets above a larger mobile average, which indicates that there is a purchase movement.
The consolidation of Ethereum lasted a certain time, followed by a Haussier crossing. Historically, this scheme has preceded significant covers, and there is a good chance that Ethereum will be about to rebound with a high percentage of unconditional movement.
Ethereum could reach higher price levels due to a bullish crossing on market analysts and a drop in sales pressure with an increase in whale accumulation.
Ethereum network fees have reached their lowest level for 4 years
The fundamentals of the chain also improve. According to Santiment, the transaction costs of Ethereum fell to $ 0.168, the lowest level since May 2020. The drop in costs is generally the sign of better scalability of the network and greater accessibility for users.
The drop in gas fees coincides with the improvement of Ethereum’s scalability, probably due to Ethereum 2.0 updates and the growing adoption of layer 2. The reduction in transaction costs makes the network more attractive for users and developers, which could increase activity and, by extension, demand for ETH.
If this increase in the use of networks persists, it could serve as an additional catalyst for a rise in prices.
Non-liability clause
In this article, the points of view and the opinions expressed by the author or by any person quoted are given as information only and do not constitute advice on investment, finance or other. Trade or investment in cryptocurrencies has a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.
