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Ethereum (ETH) is currently trading around 11% below its local high of around $2,730. Investors are optimistic about a potential price rise in the coming days, driven by encouraging on-chain data.
Key indicators from Glassnode indicate a decline in ETH flows to exchanges, suggesting that investors are holding on to their assets rather than selling them. This trend generally indicates increased accumulation and could foreshadow a bullish breakout.
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As the broader crypto market evolves, Ethereum investors remain vigilant, anticipating a bullish recovery that could propel prices higher. Declining FX flows could mean traders are positioning themselves for a potential bullish move, as they appear more inclined to hold on to their holdings during this crucial phase.
If Ethereum manages to surpass critical resistance levels, it could reignite bullish momentum and attract new investments. The next few days will be crucial for ETH as traders closely monitor price action and on-chain metrics for signs of a resurgence. Under the right conditions, Ethereum could aim for new highs, reinforcing the overall positive sentiment in the market.
Ethereum exchanges net position change declines
Ethereum (ETH) is currently at a crucial price level following a 15% decline from its local highs. The broader crypto industry is expecting a massive rally following the Federal Reserve’s decision to cut interest rates a few weeks ago. However, despite the optimistic outlook, prices have struggled to climb, leaving many investors nervous.
Fortunately, on-chain data from Glassnode suggests a reduction in selling pressure, which could improve market sentiment and pave the way for a potential ETH rebound. One of the key indicators to consider is the Ethereum exchanges net position change indicator, which has been declining since mid-September. This indicator tracks the flow of ETH into and out of exchanges, and its recent decline means that inflows have decreased significantly.
Lower capital inflows generally indicate reduced selling pressure, as fewer investors move their assets onto exchanges for sale. This change in momentum reflects a positive change in market sentiment, suggesting that investors may be less inclined to liquidate their positions at current price levels.
As sales activity decreases, Ethereum could benefit from some much-needed breathing space to recover from its recent decline.
Additionally, increased investor confidence could lead to higher prices in the coming days. Ethereum could be positioned for a resurgence if this trend continues, potentially paving 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 Tests Crucial Supply Levels
Ethereum (ETH) is trading at $2,448 after being rejected at the 4-hour 200 exponential moving average (EMA) at $2,516. Price also struggled to maintain momentum above the 4-hour 200 moving average (MA) at $2,458, indicating a critical moment for ETH. If Ethereum fails to reclaim these two key levels in the coming days, it is at serious risk of falling towards the $2,200 zone, potentially triggering a deeper correction.
Conversely, if ETH manages to break above and hold these crucial indicators, it could signal a reversal in the bullish trend, opening the door for a push towards the $2,700 resistance zone. The outcome of the coming days will be crucial in determining Ethereum’s trajectory.
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Traders and investors will be watching these levels closely, as the ability to recover them could provide the momentum needed for ETH to regain strength and attempt to test higher price levels. The current price action reflects market uncertainty, making it imperative for ETH to assert itself decisively to inspire confidence and spark a rally.
Featured image of Dall-E, chart by TradingView
