The ethereum market has been a whirlwind of activity in recent days. After a brutal price correction last week, the world's second-largest cryptocurrency by market cap has seen a mini-rebound, leaving investors wondering if this is the start of a sustained bull run or a fleeting blip before another fall.
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ethereum recovers, but questions remain
ethereum ethereum/” target=”_blank” rel=”nofollow”>(eth) rose 3.7% in the last 24 hours, driven by a general rally in the cryptocurrency market. This positive move comes after a significant price drop that saw eth fall to $2,850. The recent surge has sparked optimism among some analysts, with popular crypto figure Ali calling for a possible “one to four candle bounce” based on a buy signal he identified on the eth chart.
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The TD Sequential presents a buy signal in the twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereum daily chart! It is anticipated that twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth We could see a bounce of one to four candles. pic.twitter.com/Vg7FTl9X2a
—Ali (@ali_charts) twitter.com/ali_charts/status/1790682299387850852?ref_src=twsrc%5Etfw” rel=”nofollow”>May 15, 2024
However, not everyone is convinced. A closer look at the on-chain data reveals some mixed signals. Data from CryptoQuant shows a sharp increase in eth currency reserves in recent days, suggesting that investors could be dumping their holdings rather than accumulating them.
This is further supported by data from Santiment, which indicates an increase in eth supply on exchanges over the past week.
The behavior of large investors, often called “whales,” also paints an unclear picture. While the supply of ethereum held by major addresses remained stable, suggesting that whales have not made any significant moves, this could be interpreted in two ways.
Some believe this indicates a wait-and-see approach by the whales, anticipating a potential market top before re-entering.
Undervaluation Suggests Potential Growth
Despite conflicting signals, some metrics point to a possible eth price rise. The token's network-to-value ratio (NVT), analyzed by Glassnode, has decreased significantly over the past week.
Market sentiment and technical indicators send mixed messages
Meanwhile, adding another layer of complexity to the prediction puzzle is the current market sentiment around eth. While some analysts are turning bullish, as evidenced by the rise in eth-weighted sentiment on social media platforms, technical indicators paint a less clear picture.
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The Relative Strength Index (RSI) and Money Flow Index (MFI) have fallen recently, which could suggest a loss of momentum in the recent rally. However, the Moving Average Convergence Divergence (MACD) indicator has presented a bullish crossover, hinting at a possible continuation of the uptrend.
A possible bull run for ether
While the recent price surge and some on-chain metrics suggest a possible bull run for ethereum, conflicting signals from currency reserves, whale behavior, and technical indicators make it difficult to predict with certainty.
Featured image from Popular Mechanics, TradingView chart
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