Ethereum could see a significant price increase as the bullish setup forms, and as spot Ethereum ETFs are flooded again after a recent downturn.
You can read more about it here:
- Ethereum’s price has fallen 8% since its previous high.
- DAT accumulation has led to a record low in the exchange balance.
- The weekly chart is showing a head-and-shoulders pattern that will last for several years.
Crypto.news reports that Ethereum (ETHAt the last time check, on December 15th morning, Asian Time, it was at $3.113, down 8.1% since Thursday. It is also 37.1% below its high of August.
Investors were hesitant to take risks due to macroeconomic worries, a decline in the network’s activity and a profit-taking trend. massive liquidations This has affected the wider crypto market.
There are signs, however, that Ethereum may be about to enter a phase of consolidation before it experiences a huge upswing in the coming weeks.
The supply of assets held by centralized exchanges dropped to an all-time low, 8.7%. This is the lowest level since mid-2015, when the network was launched. As more ETH was used for staking and restaking while digital asset treasuries focused on accumulating the cryptocurrency, this happened. Tom Lee’s Bitmine is the largest and most popular among them. bought Another $73.2 Million just Yesterday
When exchange balances fall, the sell-side tends to be less pressured, and this could lead to a price increase if demand is high.
Inflows into U.S.-based spot Ethereum ETFs returned last week. Nearly $209 million After a week’s worth of withdrawals, investors are likely to be bullish on an asset. Investors tend to become bullish when an asset attracts institutional interest.
The weekly chart shows that Ethereum is forming an inverse head-and-shoulders pattern. This can be seen as a sign of a possible bullish turn.
Ether has also moved over the moving average of 50 days, an important level. Breaking above this has previously led to strong rallies.
The relative strength index is also steadily moving upward, which indicates that the buying pressure on the token has begun to increase.
Ether is expected to reach a price of around $3.600 in the near future, which would represent a 15.65% increase over its current value. It also coincides with a 61.8% Fibonacci Retracement Level, which is a major resistance area for traders.
In contrast, $2.760 could serve as a major level of support if there is renewed selling pressure. This level aligns with 38.2% Fibonacci Retracement below.
Disclosure: This article doesn’t represent investment advice. This page is intended for informational purposes only.
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Source: crypto.news
