- Ethereum’s gains were strong, spot ETF flows increased and many holders profited.
- This could lead to profit takers selling ETH, but ETH is likely to rise higher and test $2.8k.
Ethereum [ETH] The price of the dollar has risen by 64% over the last 19 days. It was evident that the exchange reserves were falling. ETH accumulation. The market showed early signs of recovery, but its upward trend could continue to increase.
An announcement about the Pectra upgrade The staking pool attracted more participants than retail investors. The shift in the staking trends indicated increased confidence towards post-upgrade Ethereum.
Source: Coinglass
Increased spot ETH ETF flow was an early indication of a bullish stage. ETH surged 12% over a period of a day in the past three weeks, rising from $1.580 to $1.770. In the next four days, spot ETH for Ethereum was in high demand. However, the momentum towards the biggest altcoin slowed.
This is why a sustained rise in spot ETFs may not lead to immediate gains. However, it can be interpreted as a sign of bullish optimism. Will this optimism see ETH move higher, or are short-term traders going to realize profits?
Ethereum is at risk of profit-taking activities?
Source: Glassnode
This is the lowest it has been since November 2022. In the last three weeks, the price movement has seen the metric rise. Overheating conditions are not indicated by the threshold of 95%.
Source: Coinalyze
Coinalyze data showed a significant increase in spot demand over the last month.
Due to its natural nature, this current rally has lessened the danger of short-term traders realizing profits.
Source: Coinglass
The six-month ETH heatmap revealed that levels $2,718-2,878 represented the next large liquidity pockets which could drive prices up. This was another indication that the price movement will continue beyond $2.6k.
TradeView: Source for ETH/USDT
This chart displayed a demand zone between $2.750 and $2.820. The 3-day chart matched up with the heat map for liquidation and provided a target price that was bullish.
It is not clear if ETH will immediately go higher, and surpass $3,000.
It was evident from the price movement that the market may need a few consolidation weeks below $3k to prepare for a next move.
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Source: ambcrypto.com
