How Ethereum Investors Sentiment May Impact ETH Price
Ethereum (ETH) investors appear to believe that the cryptocurrency’s rally above $3,400 could be a better start. This statement may be attributed to their recent behavior, with many holders holding off on selling despite the recent pullback.
Will ETH price increase accelerate? this On-chain analysis Look at the possibilities.
Ethereum falls on profit taking, bullish sentiment improves
December 30, ETH price falls below It broke above the $3,400 mark during a brief consolidation period. But as of this writing, the value has risen above that threshold. The findings show that actions by Ethereum investors will be crucial to its rapid recovery.
According to data from IntoTheBlock, holding time has increased by 40% in the past seven days. Coin holding time measures period Cryptocurrencies are held but not sold. When it goes up, it means holders are not selling, but when it goes down, it means the opposite.
Since ETH is the former, this shows Ethereum investors are bullish Regarding short-term price trends. Therefore, if the momentum is maintained over time, the cryptocurrency’s value could rise to levels higher than its current position.
Despite market optimism and recent price increases, on-chain profits have declined. On the last day of 2024, the profitable trading volume was 995,000 ETH. Today, it has dropped to 661 ETH.
This decline reinforces the bullish sentiment among Ethereum investors. If this number continues to decline, then Ethereum price unlikely to experience Selling pressure. Instead, the cryptocurrency may be slowly heading towards a significant upward trend.
ETH Price Prediction: Very Close to Above $4,000
From a technical perspective, bulls successfully defended Support is at $3,328. Additionally, the Money Flow Index (MFI) reading increased. MFI is a technical indicator that measures the level of buying and selling pressure on cryptocurrencies.
When ratings rise, it indicates buying pressure. But when it falls, it signals selling pressure. As the former happens, ETH could close above 4,111 very quickly. If confirmed, the price could jump to the $4,500 mark.
However, this may not happen if the bears sink Ethereum price below the support at $3,328. Conversely, ETH may slip to $3,081. In a highly bullish scenario, it could drop to $2,878.
Disclaimer
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