Ethereum
How Ethereum (ETH) Holders Could Power the Price to a 12% Rally
Ethereum (ETH) price managed to hold above the $3,000 line as support for almost a week before recovering.
Now, with the help of investor resilience, the world’s largest altcoin could continue its recovery.
Ethereum Investors Won’t Sell
At the time of writing, Ethereum price is hovering above the $3,000 mark, showing signs of further recovery. One of the biggest contributors to this potential rally are investors who have chosen to HODL instead of selling.
This can be seen in the sudden drop in active deposits on the network. Active deposits indicate investors’ intention to sell their assets to make profits or offset losses.
Active Ethereum deposits. Source: Feeling
Currently, ETH deposits are at a seven-month low, which is a good sign for the altcoin. That means Ethereum would not be vulnerable to corrections due to sales, which gives it the possibility of recovering recent losses.
Learn more: Ethereum ETF explained: what it is and how it works
This sentiment is also observed in the shift in supply from short-term investors to medium-term investors. Addresses holding their assets for one to three months observed an increase of 638,000 ETH worth over $2 billion.
Their increase in supply suggests that short-term investors who hold their assets for less than a month and are inclined to sell them find profit potential in the asset and therefore hold on to their supply for the time being.
This uptrend would help the altcoin rally back to $3,500.
ETH Price Prediction: The Crucial Fibonacci
Ethereum price is trading at $3,202 at writing, closing in on $3,376. This price is in confluence with the 50% Fibonacci retracement from $4,575 to $2,743. Backed by investors, if ETH breaks through the 50% Fib resistance, it would be willing to continue this rally.
As a result, Ethereum price would eventually test the $3,582 resistance, propelling ETH above $3,500, which acts as resistance and psychological support.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
However, if the 50% Fibonacci barrier is not breached and the altcoin falls again, without breaching it, it would likely fall to $3,093. The loss of this support would invalidate the bullish outlook, sending Ethereum price is below $3,000.
Disclaimer
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