The cryptocurrencyย market structure isย still in a dilapidated state, facing shrinking volumes. Ethereumย (ETH) price has been pivoting around $1,800 for severalย days with the tug of war betwixt the remaining bulls and bears getting fierce.
2 key levels are likely to determine where the largest smart contracts cryptoย token with $214 Billion in marketย cap is heading, beginningย with an ascending trendline and the 50-day Exponential Moving Average (EMA).
Regardlessย of the stability exhibited by Ethereumย (ETH) following the rejection from $2,000 earlier thisย year, its downside appears vulnerable. Havingย statedย that support provided by the trendline around $1,750 is bound to play a critical role in whatย goesย on next.
Ethereumย (ETH) Whales Back in Accumulation Mode
Atย theย timeย ofย publication, Ethereumย (ETH) price is currentlyย worth $1,775 amid the danger of a weakening downside. It has been a challenging time for most digitalย currencies with on-chain data from Glassnode indicating that Ethereumย (ETH) addresses with at least 10,000 coins had hit a six- 30ย days low of 1,156 on Wednesday.
Nonetheless, this analysis looks beyond the worrying picture, using additional on-chain data to show that the situation is not that dire for the second- largest crypto.
The same Glassnode likewise shared more statistics from the network, with the number of non-zero balance addresses increasing to an record-breakingย peak of 99,597,841.
Ethereumย (ETH) No of addresses | source GlassnodeThe situation could even be getting better if we consider on-chain data from Santiment, which outlines that investors are accumulating Ether as opposed to selling. Forย example, the chart below shows that the supply held by top addresses had soared significantly over the last 30 days.
The cryptocurrenciesย supply held in known exchange addresses had dropped considerably. On the other hand, supply held by non-exchange addresses was increasing consistently.
Ethereumย (ETH) supply distribution | source SantimentIt is worth keepingย inย mindย that investors send their cryptoย tokens to exchanges when theyย ย intendย to sell, otherwise, they prefer to keep their holdings off-exchange platforms.
On the other hand, when supply held by exchanges is reducing it impliesย that selling pressure is likewise weakening โ a situation likely to nurture a positiveย tendency breakout. Furthermore, these metrics suggest that investors are on an accumulation spree.
What Does This Accumulation Mean for Ethereumย (ETH) Price?
Accumulation suggestsย that investors are confident that although theย present market structure is not favorable, a rebound is in the offing in the short term.
Alongย with that, the Moving Average Intersection Divergence (MACD) outlines that buyers are slowly gaining the upper hand.
For those new to this indicator, underlying the chart below, a buy signal comes into the market when the MACD line in blue crosses over the signal line in red.
Another signal to watch out for from the momentum indicator is its movement from the negative region (current position) to the positive territory. Such a move suggestsย that buyers are getting stronger.
ETH/USD daily chartMeanwhile,ย Ethereumโs downside is sitting on support provided by 100-day EMA (in blue) at $1,775. Below this is the ascending trendline, which as illustrated in the chart, has remained relevant to Ethereumย (ETH) since November.
In that case, Ethereumย (ETH) is expected to retest the trendline, sweep through fresh liquidity and start the much-awaited rebound to $2,000.
Nonetheless, if declines overwhelm the trendline support, all hell could break loose, and increase the danger of revisiting levels at $1,600 and $1,450, respectively especially if the 200-day EMA (in purple) does little to prevent the losses.
Evaluating Ethereumย (ETH) Price With Other Indicators
The Money Flow Index (MFI) has rebounded from levels nextย to 20 into the upper half of the neutral region. This bounce impliesย that more money is flowing into Ethereumย (ETH) markets compared to the money flowing out. If sustained, we can anticipate a tendency reversal in theย following sessions or severalย days.
ETH/USD daily chartIn the same chart, the negative divergence in the Relative Strength Index (RSI) exhibits growing overhead pressure in Ethereumย (ETH) markets.
That stated, if Ethereumย (ETH) does not shoot over $1,800 soon, we could anticipate more downside action, possibly to the ascending trendline as analyzed. Here, a rebound could commence with the help of fresh liquidity and the accumulation between investors, as earlier established.
yPredictโs Viral Presale is Selling Out Fast
As investors wait for the start of a new era for the cryptocurrency industry in Hong Kong, it would be prudent toย begin diversifying portfolios early enough.
Up-and-coming projects like yPredict allow investors to buy highly discounted cryptoย tokens in their presale stages.
The InsideBitcoins.com team analyzes these emerging ecologicalย systems weekly, to attract you some of the best cryptocurrency presales to buy for 2023.
In brief, yPredict is an AI-powered trading and market intelligence platform that mainly concentratesย on helping investors block out the noise and see the bigger picture which is critical to making the desired profits.
yPredict intendsย to strengthen its technological capabilities and deliver innovative Artificialย Intelligenceย (AI) solutions to its clients.
Inย theย meantime, the team is introducing YPRED cryptoย tokens in the market via a viral presale that has raised $1.69 million in a matter of weeks.
Investors are buying YPRED for $0.09 in stage 6 but this price will increase to $0.1 in theย following round, while the cryptoย token is expected to list on exchanges at $0.12.
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