As Ethereum’s price consolidates above the 100 and 200-day moving averages, it indicates a bullish trend in the market. The breakout above the critical 100-day moving average at $3,354 led to a period of sideways fluctuation, showing an equilibrium between buyers and sellers. The launch of spot ETH ETFs has brought upward momentum targeting the wedge’s upper boundary of $3.7K in the mid-term, suggesting a continuation of the bullish rally.
Technical Analysis and Price Range
The price of Ethereum is currently confined within a crucial range, bounded by the wedge’s upper boundary at $3.7K and significant support at $3.4K. On the 4-hour chart, buyers have struggled to breach the previous major swing high of $3.5K due to prevailing selling pressure, resulting in sideways consolidation. The formation of an ascending wedge pattern, typically signaling a bearish reversal, may see a resurgence in demand leading to a break above the wedge. However, an unexpected bearish breakout could prompt a short-term retracement phase before the next impulsive bullish move.
Investor Behavior and On-Chain Metrics
With Ethereum’s price recovering from below $3K and the official launch of ETH Spot ETFs, analyzing investor behavior using on-chain metrics provides insights into recent recovery reasons and future trends. The Ethereum Exchange Reserve metric, measuring the amount of ETH held in exchange wallets, shows a rapid drop in exchange reserves, especially following news of the potential launch of Spot ETFs. This trend implies that large investors bought the dip during the recent market correction and are now withdrawing their coins from exchanges for long-term storage, signaling a bullish sentiment and potentially sustainable rally in the coming months.
Ethereum’s price analysis indicates bullish momentum with targets set at the wedge’s upper boundary. Investor behavior, as reflected in on-chain metrics, suggests a positive outlook for the cryptocurrency, with large investors accumulating for the long term. This combination of technical analysis and investor behavior paints a picture of a potentially sustainable rally for Ethereum in the near future.
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