Ethereum [ETH], the second-largest digital currency globally in terms of market capitalization, has attracted attention from large investors and traders due to its intriguing price movements.
Ethereum’s Price Analysis and Important Levels
As per CryptoCrypto’s price analysis, ETH is nearing its most formidable resistance level and encountering challenges in surpassing it.
Historically, ETH has encountered this level four times, each instance being met with selling pressure and subsequent considerable price drops. This trend might clarify the heightened interest from whales and traders.
From recent price movements, a potential 18% surge to $4,850 could be in the cards if ETH successfully breaches this barrier and manages to close a daily candle above $4,100 in the near future.
Encouragingly, ETH is currently trading above the 200-day Exponential Moving Average (EMA) on a daily basis, signaling an upward trend.
Favorable On-chain Indicators
The general market sentiment seems positive following Bitcoin’s [BTC] reclaiming of $100,000 and the continued upward momentum of various other cryptocurrencies.
This positive sentiment could act as a catalyst for ETH’s impending rally. Whales and traders have demonstrated strong confidence in the altcoin, as reported by Coinglass.
Coinglass’s data on ETH Spot Inflow/Outflow illustrates significant outflows from exchanges, totaling $35.6 million. In the realm of cryptocurrency, the term “outflow” denotes the movement of assets from exchanges to personal wallet addresses.
These metrics imply a potential upward surge, offer an opportune moment for purchasing, and help mitigate downward selling pressure.
Traders Heavily Favoring Long Positions
In addition to whale activity, traders are exhibiting notable faith in the altcoin. The current ETH Long/Short ratio on Binance, as per Coinglass, stands at 3.17, reflecting robust bullish sentiment among traders.
Presently, 76% of the leading traders on Binance are holding long positions, while 24% have opted for short positions.
Considering these on-chain metrics, it appears that bulls are in control of the asset, potentially aiding ETH in surmounting one of its most formidable resistance levels.
At the time of writing, ETH is hovering around $3,990, marking a price increase of more than 3.10% over the past 24 hours.
However, trading volume during the same period has decreased by 9%, suggesting reduced engagement from traders and investors compared to the previous day.