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Tag: Ethereum price prediction

  • Ethereum “Set For Further Gains,” Analyst Puts This Target

    Ethereum “Set For Further Gains,” Analyst Puts This Target

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    An analyst has explained that Ethereum could be set to see a further rally based on on-chain data. Here’s the level ETH may end up surpassing.

    Ethereum Has No Significant On-Chain Resistance Ahead

    In a new post on X, analyst Ali has discussed how Ethereum’s support and resistance levels are looking like based on on-chain data. In on-chain analysis, the potential for any level to provide any notable amount of support/resistance to the price depends on the number of investors who acquired their coins.

    Here is a chart that shows the amount of ETH that was bought at some of the price ranges that the asset has visited before:

    The density of cost basis at each of the different ETH price ranges | Source: @ali_charts on X

    The graph shows that the $2,235 to $2,302 range carries the cost basis of a significant number of coins. More specifically, 1.84 million addresses acquired more than 6 million ETH inside this range.

    Currently, the Ethereum price is trading just above this range, implying that all these investors are in the green. If the Ethereum spot price retraces into this range, these holders could show some reaction, as their profit-loss boundary would be retested.

    Since these holders would have been in profits just before the retest, they might want to buy more, as they may believe that this same price range that was profitable earlier might turn out to be a worthy buy again.

    Since the range is thick with investors, this buying effect that may arise on a retest could end up providing support to the price. If the support fails, the price might be between $1,958 and $2,029.

    This range is much more robust, hosting a cost basis of over 37 million ETH. Ali notes that this support could potentially help cushion any corrections that may take place.

    Now, Ethereum has strong support below, and as is apparent in the chart, there is no major demand wall above it simultaneously. Investors in loss (those with a cost basis higher than the current spot price) may be desperate to escape the market, so the price rising to their break-even can be an enticing exit opportunity.

    If many holders are sitting at a loss, their demand zone could provide significant resistance to the price because of such selling. ETH has no such obstacles in the nearby price ranges so that the coin could rally further. “The path ahead of ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond,” explains the analyst.

    The market intelligence platform IntoTheBlock has also shared a chart that could provide further evidence for a bullish case of Ethereum.

    Ethereum Long-Term Holders

    The trend in the HODLer ratio for Bitcoin and Ethereum | Source: IntoTheBlock

    As is visible in the above graph, the percentage of Ethereum investors who can be classified as “HODLers” (1 year+ holding time) has shot up recently. “This year, the percent of long-term ETH holders surpassed that of Bitcoin for the second time ever!” notes IntoTheBlock.

    ETH Price

    Ethereum is currently at the $2,316 mark, not too far above the support zone mentioned earlier.

    Ethereum Price Chart

    Looks like the price of the coin hasn't been moving much recently | Source: ETHUSD on TradingView

    Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, IntoTheBlock.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Keshav Verma

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  • Ethereum Retests Breakout Zone, Analyst Sets $3,500 Target

    Ethereum Retests Breakout Zone, Analyst Sets $3,500 Target

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    An analyst has explained how Ethereum is retesting a breakout zone currently and that this might lead toward a price target of $3,500.

    Ethereum Is Retesting The Breakout Line Of An Ascending Triangle

    As pointed out by analyst Ali in a new post on X, Ethereum may be preparing for a further climb right now as it’s retesting the breakout zone of an ascending triangle.

    An “ascending triangle” is a pattern in technical analysis that, as its name implies, resembles a triangle. The pattern involves a horizontal line made by connecting highs and a slant line that strings together higher lows.

    When the price retests the upper, horizontal level, it could be probable to feel some resistance. On the other hand, a touch of the lower level could lead to the price rebounding back up.

    A break out of either of these lines suggests a potential sustained continuation of the trend. Naturally, an escape out of the triangle towards the upside implies bullish momentum, while a fall under means bearish momentum.

    Like the ascending triangle, there is also the “descending triangle,” which is a similar pattern except for the fact that the two levels are switched around (as the prevailing trend is towards the downside).

    Now, here is the chart shared by Ali that displays how the price is interacting with an ascending triangle right now:

    Looks like the asset's value has plunged back towards the triangle in recent days | Source: @ali_charts on X

    As is visible in the graph, Ethereum found a bottom at the lower line of this ascending triangle pattern back in October. Following this low, the asset turned itself around with a sharp rally and went on to challenge the upper line.

    The cryptocurrency succeeded in finding a break above the triangle and observed a continuation of the bullish momentum, exploring new highs for the year. Recently, though, the asset has slumped back again and has now fallen towards the triangle’s breakout line.

    So far, the line has provided support to the asset, as its price has been able to remain above it. The analyst believes that this retest could be a sign that the coin is preparing for a further rally.

    “The price range between $2,150 and $1,900 could be the ideal zone for accumulation before ETH sets its sights on a higher target of $3,500,” explains Ali. From the current price, such a target would mean a rally of almost 60% for the asset.

    October, the month when Ethereum turned itself around off the triangle’s slope, was also an inflection point for the asset in terms of on-chain activity, as the analytics firm Glassnode has explained in its latest weekly report.

    Ethereum On-Chain Activity

    The trend in three on-chain indicators for ETH | Source: Glassnode's The Week Onchain - Week 51, 2023

    From the chart, it’s visible that the Ethereum transaction count and transfer volume have both been trending up since the inflection point a couple of months back, which could be bullish for the price.

    ETH Price

    Ethereum has gone a bit stale recently as it has been consolidating around the $2,200 mark.

    Ethereum Price Chart

    The price of the coin appears to have been moving sideways recently | Source: ETHUSD on TradingView

    Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Keshav Verma

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