Ethereum (ETH) is up by 0.53% and trading at $2,493.41, as trading volumes increase 20.93% to $13.48 billion over the past 24 hours. Market analysts are paying attention to signs of an upcoming rally. Large investors are gradually buying and storing more ETH. Whale statistics on the blockchain record that at least 450,000 ETH have been purchased in the past 30 days.
The pattern usually reveals absolute confidence, as large investors gather during calm markets and keep their holdings until the trend strengthens. The fact that prices remain low and do not change much could point to an increase in the near term.
Reduced Exchange Supply Signals Lower Sell Pressure
Another critical indicator supporting bullish sentiment is the decreasing supply of ETH on centralized exchanges. In April, almost 1 million ETH were sent from smart contracts to private wallets. Less ETH being held in exchanges usually means sellers are less active in the short term.
If the exchange is filled up to low levels, then traders have big buy orders and do not want to sell. Most likely, people are keeping ETH, planning for it to rise in the future. If liquidity drops on exchanges and demand goes up, the result can be higher Ethereum prices, making things even more positive for it.
Key Technical and On-Chain Metrics Remain Supportive
Ethereum continues to hold above the crucial $2,200 support zone. Maintaining this level is seen as critical for preserving bullish momentum. Analysts point out that any sustained move above this zone could open the way for a recovery toward $3,000 or beyond.
Market Value to Realized Value (MVRV) ratios have also shifted into bullish territory, suggesting ETH may currently be undervalued. Analysts think that Ethereum has been in a triangle pattern for more than a year, starting in late 2020. As the price approaches the top of the structure, this is often an early sign that the asset could break out
Source: Tradingview
The RSI has decreased to 54.21 from a high of about 70, nearly indicating bears are taking over, but the market is still not oversold. The MACD line (98.23) is below the signal line (134.09), which points to a possible downtrend. Following the rise in April and May, ETH is now reaching resistance around $2,540, and if it fails to move up, the price may fall or move sideways within a narrow range.
Disclaimer:Â This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
