The current price of Ethereum has been consolidating above the 100-day and 200-day moving averages, indicating a bullish trend in the market. This consolidation phase follows a period of sideways fluctuation after breaking above the critical 100-day moving average at $3,354. The lack of clear direction in the price suggests an equilibrium between buyers and sellers in the market.
The launch of spot ETH ETFs has brought upward momentum to Ethereum, with a net inflow of $106.6 million on their first day. This surge in buying interest is expected to pave the way for a continuation of the bullish rally. The primary target for buyers is the wedge’s upper boundary at $3.7K. The price is currently confined within a crucial range, with significant support at $3.4K. A bullish breakout seems more likely in the mid-term.
Analyzing the behavior of investors using on-chain metrics can provide insights into the recent recovery and future trends of Ethereum. The Ethereum Exchange Reserve metric, which measures the amount of ETH held in exchange wallets, has been dropping rapidly in recent weeks. This decrease suggests that large investors are withdrawing their coins from exchanges for long-term storage, signaling their intentions to hold onto their assets.
Despite the prevailing selling pressure in the market, the bullish sentiment for Ethereum is expected to lead to a breakout above the ascending wedge pattern on the 4-hour chart. This pattern typically suggests a bearish reversal, but given the current market conditions, a resurgence in demand is anticipated. In the event of an unexpected bearish breakout, there might be a short-term retracement phase before the next impulsive bullish move.
The future of Ethereum’s price looks promising, with the launch of spot ETH ETFs driving buying interest and reducing the available supply on exchanges. The on-chain metrics indicate that large investors are bullish on Ethereum and are accumulating coins for long-term holding. The potential for a sustainable rally in the coming months is high, with a bullish breakout anticipated in the mid-term. Investors should monitor the market closely for potential entry points and opportunities to accumulate ETH at lower prices.
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