After dropping to a recent low of $2309, Ethereum [ETH] has displayed a significant uptrend momentum, ultimately turning the month of October into a positive one.
As of the current moment, Ethereum is being traded at $2525, reflecting a 2.44% increase over the past 24 hours. Moreover, ETH has surged by 4.36% on a monthly basis, extending the bullish trend with a 1.53% rise on a weekly scale.
Further analysis reveals a notable increase in trading activities for the altcoin, with its trading volume spiking by 35.51% to reach $12.43 billion.
This market scenario has sparked discussions among cryptocurrency analysts regarding the trajectory of Ethereum. Notably, renowned crypto analyst Man of Bitcoin has emphasized the importance of the $2264 price level for sustaining the current bullish momentum.
Assessment of Market Sentiment
Man of Bitcoin’s analysis suggests that Ethereum is currently in a consolidation phase, showcasing sideways movement in its price action.
The observations indicate a degree of weakness in the current price fluctuations, hinting at a possible downside in the future.
It is consequently argued by analysts that the bullish outlook can only be maintained if Ethereum remains above the critical $2264 level.
By adhering to this support level, as per the Elliot wave analysis, the projected next move would be Wave -C of iii at $3096. This indicates that ETH is within the third wave, known for its strength and potential for additional gains.
However, a failure to sustain the $2264 level and a subsequent breakdown would signify a movement towards Wave -iv in a downward direction.
Insights from ETH Charts
While Man of Bitcoin’s analysis provides a cautious perspective on Ethereum’s future, it is imperative to cross-validate these insights with other key market indicators.
For instance, Ethereum’s Long/Short ratio has remained notably high in the past 24 hours. Currently standing at 1.1195, the long/short ratio indicates a growing preference for long positions among investors.
In parallel, Ethereum’s Supply Exchange Ratio has exhibited a consistent decline over the preceding 5 days. A decreasing supply exchange ratio implies a tendency among investors to retain their ETH holdings, thereby reducing circulating tokens and leading to a supply squeeze.
Furthermore, Ethereum’s exchange inflow has been diminishing for the past 4 days, indicating a shift in market sentiment towards holding positions, as corroborated by the declining supply exchange ratio.
In conclusion, Ethereum is currently experiencing a bullish phase, contingent upon the $2264 support threshold remaining intact. Amid positive market sentiment and investor confidence, ETH is anticipated to challenge the $2727 resistance level in the near term.