2024-4-24 17:31 |
Ethereum continued to hover around the critical $3,000 threshold Wednesday, even as traders grappled with uncertainty amid conflicting market signals.
Notably, according to data from crypto analytics firm IntoTheBlock, despite most ETH holders being in profit, the prevailing sentiment among market participants tilts towards caution, as evidenced by the fear and greed index showing investors are “Mostly Bearish”.
Additionally, the prevailing cautious stance was further solidified with price action lingering below the 50-period moving average and bearish signals from both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
Nevertheless, amidst the prevailing bearish sentiment, analysts have started to point towards a potential turnaround for ETH’s price, fueled by optimism in the futures market.
Cryptoquant’s analyst, “The Greatest Trader”, shed light on the “Open Interest” metric, a crucial indicator that quantifies the number of open perpetual futures contracts across various cryptocurrency exchanges. Notably, he emphasized that the Open Interest metric has followed a similar trajectory to Ethereum’s recent downtrend, experiencing a substantial decline.
“This alignment suggests a cooling down of activity within the futures market. Consequently, the market appears poised for the resurgence of either long or short positions, potentially initiating a fresh and decisive market movement in either direction.” He wrote.
Further bolstering the optimistic outlook, another analyst, “Burakkesmeci,” highlighted the importance of tracking premium indices, particularly the Ethereum Coinbase Premium Index and Korea Premium Index. These indices provide insights into the buying behaviour of investors across different regions. Despite recent fluctuations, both indices remain positive, suggesting continued investor interest in Ethereum and supporting the upward trend.
From a technical perspective, various experts identified a potential Bull Flag formation, signalling a consolidation phase before a potential upward breakout.
ETH regaining the $3,200 level was huge for continuation to $3,800. We are on a bull flag, and I am looking for a clean break and validation above $3,400. $4,000 has been the strongest resistance zone for Ethereum, and if it can overcome that wall, 5,000 will come.” Analyst “Bullrunner” stated.
Furthermore, whale activity, as highlighted by Lookonchain, reveals a notable surge in ETH accumulation. This surge is accompanied by substantial withdrawals of ETH from Binance by whales such as Justin Sun, among others, strategic establishment of long positions, and increased engagement in staking activities. Collectively, these actions signify a heightened level of confidence and anticipation regarding Ethereum’s future price appreciation.
ETH was trading at $3,247 at press time, reflecting a 1.87% surge over the past 24 hours. It will be interesting to see if the price can surpass the intense resistance levels between $3,303 and $3,531, where 5.67 million addresses hold 3.66M million $ETH. Breaking past this barrier could propel ETH toward $4,013.
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