Ethereum Price Surge Expected as Long-term Investors Show Confidence
Ethereum (ETH) has once again captured attention as it steadily approaches the $2.5k mark, creating anticipation for a potential bullish rally. This consistent upward movement has likely boosted optimism in the market. The question now is whether this momentum will sustain and drive further price growth.
Confidence Among Long-term Holders
Over the past 24 hours, Ethereum’s price has seen a slight increase, currently trading at $2,465.36. An influential crypto analyst named Ali recently shared insights on an important development in a tweet.
The price of ETH has been following an upward trend within a channel, carefully testing support and resistance levels. Ali’s tweet underscored an attractive risk-to-reward ratio for long positions. Setting a stop just below $1,880, he set a target of $6,000.
A closer examination was conducted to gauge the confidence of long-term holders in Ethereum. Analysis of Glassnode’s data indicated that ETH’s Futures long liquidation dominance exceeded 80. When this metric surpasses 50, it signifies equal dominance between short-term holders (STH) and long-term holders (LTH).
Currently, it is evident that LTHs are exhibiting significant confidence in Ethereum.
Further evidence of LTH dominance can be observed through the token’s Futures long liquidations, which have rebounded after a notable decline. Additionally, the study of Ethereum’s long-term holder Net Unrealized Profit/Loss (NULP) was carried out.
NULP only considers Unspent Transaction Outputs (UTXOs) with a lifespan of at least 155 days, offering insights into the behavior of long-term investors. Presently, the metric reflects optimism, indicating strong confidence among LTHs in ETH.
Previously, reports from CryptoCrypto highlighted the optimistic stance of not only LTHs but also whales. Whale balances surged significantly in mid-October, reaching 56.68 million ETH.
Short-term Price Outlook
While long-term sentiment appears positive, projections for Ethereum’s short-term trajectory were considered. At the time of writing, ETH was testing a support level around $2,415. A successful test could propel ETH towards $2.6k on the price charts.
If Ethereum manages to surpass this resistance level, it may likely surge to $2.7k in the near future.