In this article, we look at the general outlook of Ethereum, perform a detailed analysis of the price and observe some on-chain indicators.
Yesterday, ETH unsuccessfully tried to break through the $3,000 wall, which currently acts as the main resistance, and was sent back to the current price of $2,908.
However, Ethereum remains the most suitable in the crypto market, performing even better than Bitcoin.
On the chain front, data shows a long-lasting and strong network, supported by an increase in the number of validators and coins closed in strike, as well as a high average trading volume.
All the details below.
Ethereum Leads Crypto Markets FOMO: ETH Price Analysis Shows Asset Willingness To Break $3,000 Resistance
In this start of the week, decidedly quiet, due to yesterday’s closure of the US markets for the President’s Day holiday, crypto markets are led by Ethereum and its recent attempt to surpass the key price of 3000 USD.
While Bitcoin registered its local maximum on Thursday, February 15, at a level of 52,816 USD, Ethereum showed more determination by reaching a new annual high of 2,984 USD yesterday, without however managing to break on a round to lock digit.
The price analysis shows relative strength for ETH, convincingly absorbing every dip and keeping market expectations high.
Traders are optimistic about the future of ether and are betting on the positive outcome of the approval of the spot ETF in the US for the second largest cryptocurrency by market capitalization, with several Fund Managers such as Franklin Templeton, BlackRock, Fidelity, Ark and 21Shares. Grayscale, VanEck, Invesco and Galaxy and Hashdex which have already submitted their requests to the Securities and Exchange Commission.
If things go well, ETH could even approach $3,500, a level not seen since April 2022, and then probably even $4,000 ETH.
Just to give an idea of the timing, the SEC still has 96 days before the final deadline to make a decision on the possible approval/rejection
On the more technical side of prices, the analysis highlights how Ethereum has been channeled into a very compact bullish trend since October 2023, able to keep the EMA 50 very firm on a daily basis and constantly update new highs after each brief correction attempt .
In more detail, from mid-January the bulls made themselves heard unanimously, bringing the prices of ether from $2,200 to the current values.
The psychological threshold of $3,000 may now resist fresh bullish incursions, with RSI showing the first signs of weakening in a trend heading into overbought territory.
In any case, the consistently high volumes recorded in the last trading sessions and the recent breakout above 2,700 USD seem to favor a positive scenario for the cryptocurrency, which is likely to break the resistance it faces, although after several attempts .
In the area of derivatives, data analysis on Ethereum highlights a decidedly encouraging open interest, which last week reached a combined value on all trading platforms of more than 7.7 billion dollars, a value not seen since November 2021 not.
Even the funding rate shows positive signals with a positive leverage rate in all major markets, and with numbers higher than those recorded in the last 6 months.
This means that the speculative interest in Ethereum is high and that speculators are positioning themselves (and have largely already positioned themselves) with the idea that the crypto will rise in price in the short term.
Pay attention to the volatility in this period, because it can lead to forced liquidations: in particular, the levels of 2,877 USD, 2,870 USD and 2,840 USD are the prices that can cause losses for long positions excessively exposed to leverage.
The on-chain data of the Ethereum network
After analyzing the price of Ethereum, let’s see what the chain data of the decentralized network tells us.
Even so, the overall outlook is largely positive, with most indicators showing the presence of a fertile ground for further growth of the asset.
In particular, we see the number of ETH deposited on the Beacon Chain constantly growing, as well as the number of new validators joining the network to offer their support.
As of today, about 30.87 million ETH, equivalent to more than 9 billion dollars, have been locked in the protocol PoS with about 900 thousand validators among individual users and LST platforms.
Considering a circulating supply of Ethereum close to 120 million coins, we can confirm that more than 25% of all ETH in circulation is locked in the Beacon chain.
This only serves to reduce the potential selling pressure and cause a scarcity of ether in the crypto markets.
This data, combined with the potential digital scarcity that will be caused by the likely arrival of ETH spot ETFs, could push the currency to very ambitious price levels if demand starts to feel even slightly.
It is also very interesting to note how the average volume recorded in transactions on the Ethereum chain remained consistently high in these first weeks of 2024, reaching the maximum level of 4 billion USD daily, reached as a maximum in March 2023.
A high volume supports speculative interest in the price of ETH, which coincidentally increased, precisely in conjunction with the cryptocurrency rally from October.
Airdrops, fomo for new DeFi protocols and new memecoins supported the network’s trading volume throughout 2023, with a boost in statistics in the last few months.
Finally, it is considered appropriate to show this analysis that indicates the number of Ethereum addresses in the chain that keep an average purchase price lower than the current prices, therefore they are in profit.
It is worth noting how the percentage of profitable addresses compared to the total network skyrocketed from November, from 40% to the current 94%.
This means that 94 out of 100 addresses have a positive PNL compared to their purchase price and can potentially offload their positions at any moment.
Usually in the past, when the percentage of addresses in profit reached this value, very violent selling sessions followed, leading to a sharp drop in the price of ETH.
However, it is worth noting that during the previous bull market this value remained high for several months, so in this case too we can see a long time pass before the storm arrives.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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