Ethereum (ETH) continued to demonstrate strength on Friday, albeit with low volatility, maintaining levels above the crucial $3,300 support. This steady performance has bolstered hopes among investors that ETH may find ample support to propel its price higher.
Notably, despite apparent pauses in price action behind the scenes, significant developments have been unfolding, hinting at potential explosive growth soon.
Analysts at Cryptoquant, a leading crypto analytics firm, highlighted the Taker Buy/Sell Ratio as a pivotal metric in assessing the sentiment in the futures market. The ratio, which indicates aggressive buying above values of 1 and bearish selling below, surged above 1 in tandem with Ethereum’s recent bullish reversal. This surge suggests robust buying interest in the perpetual market, signaling a strong bullish sentiment for the cryptoasset.
“If this upward trend in the Taker Buy/Sell Ratio continues, it confirms a potential mid-term bullish trend in the market, with the price likely rallying toward higher values.” The firm wrote.
Technical analysts also chimed in with trader “Posedoin,” suggesting a strategy of patience. Notably, Posedoin advised potential buyers to wait for ETH to drop below $2,700 before considering adding to their holdings, revealing that he remains optimistic about Ethereum’s eventual rise to $8,000.
Veteran trader Peter Brandt also provided a broader perspective, noting that ETH found support at the lower boundary of a 4-+ month rectangle pattern following a retest of February’s horn bottom completion. Notably, Brandt’s analysis targets an upside completion that could potentially push ETH towards $5,600 or higher.
Meanwhile, “Daan Crypto of Trades” pointed out ETH’s consolidation phase after the initial surge due to ETF news, emphasizing its position atop the Daily 200MA/EMA. He anticipated a breakout surrounding the ETF launch and expressed optimism regarding ETF flows that could exceed market expectations.
That said, amidst these bullish sentiments, Ethereum also experienced significant outflows from exchanges in the past week, amounting to $126 million worth of ETH. Analysts at IntoTheBlock highlighted this trend on Friday as indicative of substantial accumulation preceding potential price surges linked to the anticipated ETF approvals.
Notably, this optimism aligns with recent insights from BitwiseInvest, whose July 16 report speculated on Ethereum’s price potential, indicating a possible rise to $5,000.
“I think the first few weeks could be choppy, … But by year-end, I’m confident the new highs will be in. And if flows are stronger than many market commentators expect, the price could be much higher still,” wrote Matt Hougan, the firm’s Chief Investment Officer (CIO)
ETH traded at $3,497 at press time, reflecting a 2.71% upsurge over the past 24 hours. However, the cryptocurrency has seen a 11% increase over the past week, positioning it among the top gainers.
