Monitoring BitMEX Ethereum reserves helps predict potential price trends based on investor deposit and withdrawal behaviors.
Analysts examine Ethereum’s support levels and potential price reversals, highlighting two possible scenarios for future movements.
Historical volume increases in resistance areas present challenges for Ethereum’s price breakthrough, affecting future trends.
Analytics firm CryptoQuant has highlighted the importance of tracking Ethereum (ETH) reserves on the BitMEX exchange as a potential indicator of future price movements.
The “exchange reserve” is an on-chain metric tracking the total amount of ETH in centralized exchange wallets.
The importance of Bitmex exchange #ETH reserves“When Bitmex #Ethereum whales buy through Bitmex, we observe a decrease in reserves. Conversely, when they sell, we see an increase in Bitmex reserves.” – By @BlitzzTrading Read more 👇https://t.co/HmGHyHB6fF pic.twitter.com/55DMHP1eKz
— CryptoQuant.com (@cryptoquant_com) June 27, 2024
When BitMEX reserves increase, it signals net deposits by investors, often indicating an intention to sell and potentially suggesting bearish implications for Ethereum’s price. Conversely, a decline in BitMEX reserves suggests investors are withdrawing ETH, potentially indicating a bullish trend as they may plan to hold the cryptocurrency in self-custody.
Currently, Ethereum is priced at $3,387.30, with a 24-hour trading volume of $11,348,927,053. ETH has risen by 0.21% in the last 24 hours, boasting a live market cap of $407,089,103,055 and a circulating supply of 120,180,875 ETH coins.
In a recent YouTube video, an analyst examined Ethereum’s support levels and the possibility of a price reversal. As Ethereum holds a trend line in the $3,278 to $3,355 range, which is now a key support area, two scenarios are likely to evolve: Ethereum might be in the fourth wave of a more extensive correction, leading to a fifth wave down if support breaks. Alternatively, a large fourth wave could be forming, potentially resulting in a bounce before the final fifth wave down.
The analyst monitored for positive reactions before any break below the support level, considering Bitcoin’s chart impact on Ethereum’s price movements. The analysis also focused on potential resistance areas for Ethereum. Currently, ETH is trading in the support area, with a trend line break potentially that signals a reversal.
A fakeout has already occurred, and the analyst is watching the 38.2 Fibonacci retracement at $3,447 and a resistance cluster at $3,520. Historical trading volume has increased in this resistance area, presenting a significant challenge for price to break through.
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