Following Bitcoin’s surge above $67,000, the crypto fear and greed index soared to 73. While this trend indicates a bullish market sentiment, Ethereum (ETH) has not yet experienced substantial price increases.
Currently, the leading altcoin is trading at $2,604, marking a minor 0.4% decline in the past 24 hours.
On the daily chart, Ethereum is displaying a bullish divergence, with the Moving Average Convergence Divergence signaling a positive shift. Moreover, the MACD histogram bars have transitioned to green, growing in size to reflect strengthening bullish sentiment.
Nevertheless, the Chaikin Money Flow (CMF) remains negative, indicating a net outflow of capital from Ethereum rather than an inflow, suggesting potential investor hesitance.
It appears that market participants might be looking for Ethereum to breach a critical resistance level at $2,687 before committing to further buying activities.
If the anticipated bullish divergence materializes, Ethereum could surpass this resistance barrier and aim for the next target at $2,900. On-chain data analysis supports the likelihood of this upward movement.
Surge in Ethereum Exchange Outflows
On the 15th of October, Ethereum outflows from exchanges surged to a two-week high as traders withdrew their holdings, indicating a reluctance to sell. Transactions on that day amounted to 589,611 ETH, valued at over $1.5 billion.
As a result, total Ethereum netflows hit their peak since late September, suggesting a decrease in sell pressure that could pave the way for a price recovery.
Increasing Open Interest Influence
The Open Interest (OI) in Ethereum could also play a pivotal role in influencing price dynamics. As of now, Ethereum’s OI stands at $12.76 billion, underlining a growing engagement and interest from derivative traders.
Rising Open Interest coupled with minimal price fluctuations indicates a surge in speculative activities surrounding Ethereum. This scenario could lead to heightened volatility if traders decide to close their positions in response to significant market movements.
Promising Signs from Active Addresses
On the 15th of October, the number of active addresses on the Ethereum network reached 349,507, marking the highest level in the past month. This uptrend in active addresses signifies an increased demand for ETH and a growth in network activity.
The rise in active addresses aligns with the uptick in profitability metrics. Data from IntoTheBlock reveals that following the recent price uptick, the percentage of daily active addresses in profit surged to 30%, reaching its highest point in the last month. Concurrently, the proportion of Ethereum addresses in losses dropped to 13%.