For the first time since September 27, Ethereum has surpassed the $2,700 mark and is showing strong signs of maintaining its upward momentum. About ten days ago, #ETH🔥🔥🔥🔥 dropped below $2,400, sparking speculation about potential difficulties in its recovery.

However, over the past week, #etherreum has broken through key resistance levels. This analysis reveals why this bullish momentum could push the price even higher.

Decreased Selling Pressure on Ethereum

One of the key indicators supporting this bullish outlook is the Ethereum Exchange Netflow, which tracks the flow of tokens to and from exchanges. According to data from CryptoQuant, 29,378 ETH has been withdrawn from exchanges, indicating reduced selling pressure.

Typically, high values signal increased selling pressure, but in this case, the withdrawal of approximately $80 million suggests that Ethereum may not face significant selling pressure in the near future.

Low Volatility in Derivatives

In the derivatives market, volatility has decreased, meaning that traders with open positions are less likely to face liquidations. This decline in volatility, combined with lower selling pressure, creates a favorable environment for ETH’s price growth.

Another indicator of bullish sentiment is the increase in the number of addresses holding ETH worth $1 million or more. When this metric rises, it shows that long-term holders are accumulating more ETH, confirming bullish behavior.

Analyst Expects Growth Beyond $3,000

Crypto analyst Michaël van de Poppe shares a similar view, believing that Ethereum has a chance to break the $3,000 level. According to him, ETH needs to first surpass the critical level of $2,770 to sustain further growth. If that happens, the next target is around $3,200.

ETH Price Prediction: Bulls Must Defend the $2,689 Support

Looking at the daily chart, Ethereum has broken out of a symmetrical triangle, a chart pattern typically associated with further declines. This time, however, the situation is reversed, indicating that ETH could continue to rise. The key is for bulls to defend the $2,689 support level.

If the buying pressure increases and the price surpasses the resistance at $2,989, ETH could rise to $3,316. On the other hand, if the price falls below the support level, it could drop to $2,471.

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