EthereumPrice Analysis

Analytics Hint at a Bullish Bias for Ethereum! ETH Price to Spike Higher?



Bears appear to have taken over the crypto market as the majority of coins trade in red at the time of writing. Bitcoin has slipped below the psychological level of $60K and is stooping below to $58K. All the top alts inclusive of ETH, XRP, ADA and SOL are seeing down to 6-9%. However, Shiba Inu is on a rising streak up by 41.7%.

In tandem with the entire market, ETH too has taken a fall. The token is now down by 5.2% and is trading at $3973 according to Coingecko.

As ETH falls below the crucial level of $4000, support on the downside can be found at $3,750. Incase of a further fall the next support levels reside at $3,500 and $3,250. However, if ETH flips the bearish momentum and starts a hike, resistance will be found at $4500. Incase of higher rally, $4750 and $5000 will be next major resistance levels.

Bullish factors for ETH

As bullish optimism led people to move their coins off-exchange for long-term storage, the amount of Ethereum ETH held on cryptocurrency exchanges fell to a two-year low.

According to the Glassnode chart showing the Ethereum balance on cryptocurrency exchanges, crypto exchanges collectively possess 14.7 million ETH (about $59 billion), the lowest number since November 2018. The entire value locked in the Ethereum 2.0 deposit contract has reached a new all-time high of $34.3 billion, demonstrating trust in the coin’s value. 

Ethereum’s realised cap – the worth of all ETH at the price when it was last changed — also hit an all-time high of $186.1 billion, according to Glassnode statistics. This adds to the optimistic sentiment by demonstrating that market participants are willing to continue paying ever-higher prices for the coin.

Miners have been encouraged to invest in Ethereum infrastructure as prices have risen above $4,000, as seen by the network’s hashrate reaching a new all-time high. 

Market players are also becoming more bullish as they prepare for the Altair network update, which is set to go place today. 

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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