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Ethereum (ETH) is currently trading roughly 11% below its local highs of around $2,730. Investors are optimistic about the potential price rise in the coming days, driven by encouraging on-chain data.
Key metrics from Glassnode indicate that ETH inflows to exchanges are declining, suggesting that investors are holding on to their assets rather than selling. This trend usually indicates increasing accumulation and could herald a bullish breakout.
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As the broader cryptocurrency market develops, Ethereum investors remain vigilant, anticipating a bullish rebound that could send prices higher. A decline in exchange flows could indicate that traders are positioning themselves for a potential upward movement, as they appear more inclined to hold on to their holdings during this crucial phase.
If Ethereum succeeds in breaching critical resistance levels, it could ignite bullish momentum and attract further investment. The next few days will be pivotal for ETH, as traders closely monitor price action and on-chain metrics for signs of recovery. Under the right circumstances, Ethereum may set its sights on new highs, reinforcing the overall positive sentiment in the market.
Decreased net change in Ethereum exchange position
Ethereum (ETH) is currently at a critical price level after a 15% decline from its local highs. The broader cryptocurrency industry is filled with expectations of a massive rally following the Federal Reserve’s decision to cut interest rates two weeks ago. However, despite the optimistic outlook, prices have struggled to rise, leaving many investors nervous.
Fortunately, On-chain data from Glassnode It indicates a decline in selling pressure, which could improve market sentiment and pave the way for a potential rebound in ETH. One key metric to consider is the net position change index on Ethereum exchanges, which has been on a downward trend since mid-September. This indicator tracks the flow of ETH on and off exchanges, and its recent decline indicates that inflows have declined significantly.
Lower flows typically indicate reduced selling pressure, as fewer investors move their assets to exchanges for sale. This shift in momentum reflects a positive change in market sentiment, suggesting that investors may be less inclined to liquidate their positions at current price levels.
With less selling activity, Ethereum could get some much-needed space to recover from its recent decline.
Moreover, increased confidence among investors may lead to an upward price movement in the coming days. Ethereum may be in a position to rebound if this trend continues, which could pave the way for a bullish breakout as market dynamics shift in its favor. As traders remain vigilant, all eyes will be on ETH to see if it can capitalize on this improvement in sentiment and regain bullish momentum.
ETH testing critical supply levels
Ethereum (ETH) is trading at $2,448 after facing rejection at the 4-hour Exponential Moving Average (EMA) of $2,516. The price also struggled to maintain momentum above the 4-hour moving average (MA) at $2,458, signaling a critical moment for ETH. If Ethereum fails to reclaim these two key levels in the coming days, it could be at serious risk of falling towards the $2,200 region, which could lead to a deeper correction.
Conversely, if ETH can break above and hold above these important indicators, it could signal a bullish trend reversal, opening the door for a rally towards the $2,700 resistance area. The outcome in the next few days will be vital to determining Ethereum’s path.
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Traders and investors will be watching these levels closely, as the ability to reclaim them could provide the momentum needed for ETH to regain its footing and attempt to test higher price levels. The current price action reflects the uncertainty in the market, making it necessary for ETH to assert itself decisively to inspire confidence and drive a rally.
Featured image by Dall-E, chart from TradingView
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