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At the time of publishing, Ethereum was selling at $1,836, which was less than 3% lower than the previous week’s mark. With ETH poised to break through its recent rangebound operation, the altcoin’s market movement seemed to have broken through.
Furthermore, trade rate, which had been steadily declining over the week, has increased by more than 16 percent in the last 24 hours. The rise in trading value is a direct sign of an imminent bull run. Another critical measure, the ETH funding rate, was largely flat, despite the fact that exchange reserves were at long-term lows.
Based on the attached chart, Ethereum’s short to mid-term price action can be expected to be bullish. This means that below $1,600 was an ideal price level to buy. Ergo, it is possible that buying has already slowed with the break past $1,800 and the arrival of new traders on spot exchanges. This becomes evident from the increasing number of addresses holding 0.01+ coins.
This increase in the attached map reflects retail traders; but, apart from retail traders and their demand, institutions are now purchasing Ethereum.
Meitu, a Chinese company, for example, expanded its Ethereum assets by acquiring 16,000 Ethereum worth $28.4 million in addition to more than $21 million in Bitcoin yesterday. Both retail traders and top HODLers are refusing to succumb to selling pressure, and as a result, the price will rise to a new high.
The strain has now been applied for more than four weeks. Wallets with fewer than 10,000 ETH in them have fallen by more than 7%. However, this indicates that Ethereum is in the buy zone when it falls below $1,600, and a sustained run above that level would enable ETH to reach a new ATH.
It may also be suggested that the forthcoming Berlin update would drive more traders to Ethereum in the short term, causing market discovery to begin above $2,036.
Finally, traders using contrarian strategies may argue that it is best to watch the current market action from the sidelines and sell when the price reaches a new ATH. As there have been instances of ETH succumbing to selling pressure shortly after reaching a new peak, this may be a signal for retail traders to book unrealised gains before the dip, tracking the market pattern.