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ethereum (eth) is currently trading about 11% below its local highs of around $2,730. Investors are optimistic about a possible price increase in the coming days, driven by encouraging on-chain data.
Key Glassnode metrics indicate a decline in eth inflows to exchanges, suggesting investors are holding on to their assets rather than selling them. This trend usually points to further accumulation and could herald a bullish breakout.
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As the broader crypto market evolves, ethereum investors remain vigilant, anticipating a bullish rally that could drive prices higher. The decline in forex inflows could mean that traders are positioning themselves for a potential bullish move as they seem more inclined to hold on to their holdings during this crucial phase.
If ethereum successfully breaks through critical resistance levels, it could reignite bullish momentum and attract more investments. The next few days will be pivotal for eth as traders closely monitor price action and on-chain metrics for signs of a resurgence. With the right conditions, ethereum can aim for new highs, reinforcing the overall positive sentiment in the market.
Net Position Change of ethereum Exchanges Decreases
ethereum (eth) is currently at a crucial price level following a 15% drop from its local highs. The broader crypto industry is abuzz with anticipation for a massive rally following the Federal Reserve's decision to cut interest rates a couple of weeks ago. However, despite the optimistic outlook, prices have struggled to rise further, leaving many investors nervous.
Fortunately, eth&m=distribution.ExchangeNetPositionChange” target=”_blank” rel=”nofollow”>Glassnode chain data suggests a reduction in selling pressure, which could improve market sentiment and pave the way for a potential eth rebound. A key metric to consider is the ethereum Exchanges Net Position Change Indicator, which has been declining since mid-September. This indicator tracks the flow of eth on and off exchanges, and its recent decline means that inflows have decreased significantly.
Lower capital inflows usually indicate less selling pressure, as fewer investors are moving their assets to exchanges to sell them. This change in momentum reflects a positive change in market sentiment, suggesting that investors may be less willing to liquidate their positions at current price levels.
As selling activity wanes, ethereum could gain some much-needed breathing room to recover from its recent decline.
Furthermore, increased confidence among investors could lead to an upward price movement in the coming days. ethereum may be positioned for a resurgence if this trend continues, which could set the stage for a bullish breakout as market dynamics shift in its favor. While traders remain vigilant, all eyes will be on eth to see if it can take advantage of this improved sentiment and regain bullish momentum.
eth tests crucial supply levels
ethereum (eth) is trading at $2,448 after facing rejection at the 200 4-hour EMA at $2,516. The price also struggled to maintain momentum above the 4-hour 200 moving average (MA) at $2,458, indicating a critical moment for eth. If ethereum fails to reclaim both key levels in the coming days, it may be at serious risk of falling towards the $2,200 area, which could trigger a deeper correction.
On the contrary, if eth manages to overcome and hold these crucial indicators, it could signal a bullish trend reversal, opening the door for an increase towards the $2,700 resistance area. The outcome of the coming days will be vital in determining ethereum's trajectory.
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Traders and investors will closely monitor these levels as the ability to reclaim them could provide the momentum needed for eth to regain strength and attempt to test higher price levels. The current price action reflects the uncertainty in the market, making it imperative that eth assert itself decisively to inspire confidence and fuel a rally.
Featured image of Dall-E, TradingView chart
