Ethereum Flashing Bullish Signals, But Rising Exchange Reserves Raise Concerns
Ethereum (ETH), the second largest cryptocurrency on the market cap, is flashing multiple bullish signals, indicating a potential upward movement. But rising exchange reserves are alleviating this optimism.
Has Ethereum formed a local bottom?
Ethereum has fallen nearly 20% over the past two weeks, from $2,805 on February 23 to over $2,200 at the time of writing. This decline has eliminated $80 billion from ETH’s market capitalization.
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Despite the sharp pullback, crypto analysts have pointed to several bullish indicators that could indicate an upcoming price reversal. For example, crypto analyst Merlijn traders have Highlight This ETH follows Wyckoff resuming mode.
For those who are unfamiliar with the Wyckoff recalculation model is a technical analysis method developed by Richard Wyckoff. In the context of ETH’s current price action, this pattern suggests that assets may enter the accumulation phase before potentially moving.
Analysts further pointed out that just triggered the “spring”, which suggests that it could be a bear trap, where a brief decline to support level mislead the seller, potentially laying the stage for the rally. A rebound from this level could bring ETH to $4,000.
In a separate x postaltrader Merlijn also pointed out the bullish difference in Ethereum’s 4-hour chart. According to analysts, ETH’s next direct target is $2,700 and then move higher. Cryptogoos echo These emotions.
In addition to technical indicators, whale activity has increased bullish sentiment around ETH. In X post, crypto analyst TED Famous:
Ethereum Whale purchased 17,855 eth Valued at $36,000,000, with an average price of $2,054. Total holding of $2,530,000,000 Ethereum. Do you think this will drop? Think about it.
Rising exchange reserves could ruin parties
On the bearish side, crypto analyst Ali Martinez tip ETH’s reserves in exchange have been steadily rising. Over 610,000 ETH has been transferred to the exchange over the past two weeks, which could increase sales pressure.
Martinez’s analysis and recent Report This finds that despite the relative intensity index (RSI) of ETH at multi-year lows, stores of digital currencies may still have more disadvantages.
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Indeed, ETH has always been damage Compared with cryptocurrencies such as Bitcoin (BTC), Solana (Sol) and XRP, due to their relatively weak price performance over the past two years.
However, extreme bearish sentiment may act as a counter-trend signal. environment Amazing rally stage. At press time, ETH was trading at $2,200, up 6% in the past 24 hours.
Featured images from Unsplash, charts from X and TradingView.com
