Ethereum has crossed the $2,700 mark for the first time since September 27 and is showing clear signs of maintaining its uptrend. About ten days ago, $ETH
fell below $2,400, prompting speculation that the cryptocurrency might struggle to rise again.
However, over the past seven days, #ETHđ„đ„đ„đ„ has overcome key resistance levels. In this online analysis, BeInCrypto shows how this uptrend could lead to even more price gains.
Ethereum is seeing a decrease in selling pressure
One indicator that supports this forecast is the Ethereum #exchange Netflow figure, which shows the number of coins entering and leaving #exchanges . According to CryptoQuant, market participants have withdrawn 29,378 ETH from exchanges as of this writing.
From a spot trading perspective, high values usually signal increased pressure from sellers. However, given that around $80 million was withdrawn, this suggests that ETH may not face significant selling pressure in the near term.
As for derivatives, the decline indicates low volatility, which means that traders with open positions are less likely to face liquidation. Taken together, these current conditions could be favorable for the Ethereum price.
Another indicator that supports a bullish outlook is the number of addresses that hold $1 million or more worth of ETH. When this indicator is rising, it means that HODL investors are accumulating more coins, which reflects bullish behavior. Conversely, a declining figure indicates that long-term holders are withdrawing funds, which usually indicates bearish sentiment
According to Glassnode, the number of addresses holding ETH worth $1 million or more has increased, suggesting that Ethereum's price may avoid another drop.
Crypto analyst and founder of MN Consultancy Michael van de Poppe has a similar opinion. However, in his post, van de Poppe noted that ETH needs to grow above $2,770 for it to have a chance to surpass the $3,000 mark.
"Etherium may finally turn around. A break of key resistance at $2,770 would be a great result. If that happens, the next target will be $3,200,â the analyst emphasized.
ETH price forecast: the bulls should defend the support at $ 2,689
If you look at the daily chart, you can see that the Ethereum price has come out of a symmetrical triangle. For reference, a #SymmetricalTriangle is a pattern on a chart formed by two converging trendlines that connect a series of consecutive highs and lows.
Usually, when the price of an asset breaks the lower boundary of the triangle, it continues to decline. In the case of ETH, it's the opposite: it suggests that the price may continue to rise. But for this, the bulls need to hold the support at the level of 2.689 dollars
In addition, there needs to be more buying pressure so that the price can rise above the resistance at $2,989. If that happens, the price of ETH could rise to $3,316.
However, this thesis may fail if ETH falls below the aforementioned support line. In this case, the price could fall to $2,471.
