Potential Ethereum Skyrocket to $2,000: Two Factors Stoking ETH's Steady Rise
Ethereum's Exchange Ratio Drop Signals Bullish Signals
Hey there, crypto-heads! Let's dive into the latest happenings with Ethereum (ETH). Any guesses what's causing ripples in the market lately? (Hint: It's not the ocean)
- ETH's Exchange Supply Ratio Plummets
You got it! Ethereum's Exchange Supply Ratio has taken a significant nosedive, and we're buzzing about what this means for ETH's price. This drop suggests less Ethereum is being held on exchanges, possibly moving to cold storage or DeFi platforms.
At the moment, Ethereum is priced at $1,813.73, with a 1.06% increase over the past 24 hours. Reduced sell-side pressure could lead the way for price surges in the near term, as there's less Ethereum available for quick trading.
Network Activity Heats Up: Retail Sentiment Looks Peachy
We've got some good news from Ethereum's network. New Addresses have experienced a 32.24% increase over the last week – a clear sign of growing interest among investors.
Active Addresses have also risen by 6.96%, indicating strong engagement from current holders, and Zero Balance Addresses have shot up by 120.50%, hinting that retail sentiment remains active.
Although the average Joe hasn't jumped on the Ethereum bandwagon just yet, its adoption keeps expanding, promising a continued upward trend for ETH.
Source: IntoTheBlock
Recent Short Liquidations: Is a Short Squeeze imminent?
Analyses of recent short liquidations reveal that a whopping $2.15 million in total liquidations occurred, with $643.58K alone coming from Binance.
If Ethereum manages to break the $1,900 barrier, short liquidations could snowball, leading to an anticipated short squeeze. This sequence could add fuel to the rally – especially if liquidity hunters force market participants to cover their shorts.
Continued Outflows: Exchange Supply Thins Out
Ethereum just experienced significant outflows from exchanges, amounting to -4,211 ETH. This trend suggests increasing confidence among holders, who seem content keeping Ethereum off trading platforms.
With fewer tokens available for sale, the stage is set for a bullish continuation.
Positive Funding Rate: Bullish Market Sentiment Remains
The Funding Rate for Ethereum remains sky-high at 0.00543%, indicating a bullish market sentiment. This number shows that the number of long positions exceeds short positions, meaning investors are bullish about Ethereum's price action.
The positive Funding Rate reflects the market's overall bullish attitude, aligning with Ethereum's potential for further price increases and suggesting continued growth for this finicky cryptocurrency.
ETH: Bullish Breakout on the Horizon?
There's a potential head and shoulders pattern forming on the Ethereum chart, with support around $1,758 and resistance at $1,836-$1,850. If Ethereum successfully breaches this resistance, it could aim for $2,000, offering a 8.9% potential gain! The volume trend is also on the rise, suggesting that a breakout might be in the cards.
Here's to crossing our fingers and hoping Ethereum's neckline is successfully breached, setting off a wave of bullish momentum!
Sources:- TradingView- Santiment- IntoTheBlock
- The drop in Ethereum's Exchange Supply Ratio could lead to bullish signals and potential price surges, as less Ethereum is available for quick trading.
- New Addresses on Ethereum's network have increased by 32.24% over the last week, suggesting growing interest among investors.
- Recent short liquidations, totaling $2.15 million, indicate the possibility of a short squeeze if Ethereum breaks the $1,900 barrier.
- Significant outflows of Ethereum from exchanges amounting to -4,211 ETH indicate increasing confidence among holders.
- The Funding Rate for Ethereum remains high at 0.00543%, indicating a bullish market sentiment due to the number of long positions exceeding short positions.
- If Ethereum successfully breaches a resistance at $1,836-$1,850, it could potentially aim for $2,000, offering an 8.9% potential gain.
- The positive market sentiment and decreased supply on exchanges indicate a likelihood of continued bullish activity in the crypto space, particularly for Ethereum.
- The increase in network activity, short liquidations, outflows, and positive funding rate all suggest favorable conditions for investing in Ethereum and other cryptocurrencies, driven by technological advancements in DeFi, market sentiment, and finance.
