Despite a recent price drop, Ethereum (ETH) enthusiasts appear to be gearing up for a new rally, according to on-chain data.
Investors remain convinced that the cryptocurrency pullback is temporary. Here’s a look at what could happen given the current sentiment.
Ethereum Investors Decide Not to Sell
According to Glassnode, the total inflows of Ethereum to exchanges are 249,245 at the time of writing. When this indicator increases, it means that more holders are willing to sell, which could be a negative sign for the cryptocurrency.
On the other hand, a decrease in exchange inflows indicates that investors are withdrawing their assets from trading. For ETH, the current value, estimated at approximately $780 million, represents a decrease compared to the value on Friday, November 15.
Therefore, this suggests that most holders are avoiding selling. If this trend continues, the cryptocurrency may not see a drop below $3,000 in the near term.
Ethereum Entry into Exchange. Source: Glassnode
Data from IntoTheBlock reveals that enthusiasts are actively working to support the price. This is evident from the Bulls and Bears indicator, which monitors whether addresses trading at least 1% of a cryptocurrency’s volume are predominantly buying or selling.
When the indicator shows more bulls, it indicates that participants are mostly buying. On the other hand, a higher number of bears indicates an increase in selling activity.
This weekend, Ethereum bulls outnumbered bears, suggesting that the cryptocurrency’s price could surpass $3,130 in the near term.
Ethereum Bulls and Bears Indicator. Source: IntoTheBlock
Read more: Ethereum ETFs – Understand what they are and how they work
Price prediction
From an on-chain perspective, the In/Out of Money Around Price (IOMAP) indicator supports the trend that the price may continue to rise. IOMAP helps traders identify key price levels where significant buying or selling activity is likely to occur, based on users’ positions and profitability.
It also highlights areas of support and resistance depending on the volume in a price range. Typically, the larger the cluster of volume, the stronger the support or resistance.
In the image below, approximately 3 million addresses have accumulated ETH at a price of $3,075, collectively owning 3.56 million coins. These addresses are “in profit,” indicating that they are currently profitable based on the prevailing market price.
Ethereum In/Out of Money Around Price. Fonte: IntoTheBlock
This cluster suggests strong support at $3,075, as holders at this level may resist selling at almost all other levels between $3,251 and $3,591. Given this position, Ethereum is likely to move towards $3,600.
However, if selling pressure increases, this may not happen. In this scenario, the value of the cryptocurrency could fall below $3,000.
The article Ethereum Could Skyrocket 15% With This Bullish Move – Analysis appeared first on BeInCrypto Brasil.
