#Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been exhibiting a notable price surge in recent weeks. As the cryptocurrency market continues to evolve, investors and analysts alike are eager to understand the potential price movements of ETH. This article provides a comprehensive analysis of the current market situation, on-chain sentiment, and technical indicators to predict the potential price trajectory of ETH.
Market Overview
ETH has been trading within a defined range of $3,017 to $3,400 since the approval of the Ethereum ETF. However, a recent breakout has led to a significant price increase of 28% in a short period. The trading volume has also experienced a notable surge of 4.86% to $185.52 billion. As of the time of writing, ETH is valued at $3,908, with a circulating supply of 120,137,632 tokens.
On-Chain Analysis
A thorough examination of ETH's on-chain sentiment reveals a persistent decrease in foreign exchange reserves since mid-2020. This trend indicates an increase in cryptocurrency adoption within cross-border financial systems. Furthermore, the number of long-term investors has also decreased substantially. In the last trading week of May 2024, ETH's foreign exchange reserves reached a six-year low of 1.39 million, highlighting a decrease in ETH sales and an increase in holders within the cryptocurrency market. This reduction in supply could potentially drive the price of ETH to $10,000.