Key Insights
- ETH price was hovering on the major support zone.
- Ethereum is approaching the 20-day EMA.
The price of Ethereum (ETH) has been rising over a longer period by gaining support from an upward trendline.
However, following a respectable decline, Ethereum price has settled on the trendline. As ETH gets closer to the 20-day EMA, it is being constrained into a small range.
Ethereum Price Hovering at Major Support: Could it Climb Ahead?
Ethereum crypto was trading at $2,743.00 at press time which has surged by 1% in the past 24 hours. The 24-hour trading volume was around $13.7 Billion and its market value was around $331.00 Billion.
On a daily basis, the price of Ethereum is poised to rise with bullish momentum. The price could reach $3K with just one burst of bullish momentum.
The price may produce a bullish move after it breaks out from the descending trendline. Bulls may show interest if the price holds above the trendline, which could result in a powerful bullish rally. Customers may aim for a new all-time high during this bull run.
However, selling pressure would follow if the price of the digital asset fell below the main trendline. A bearish rally over the coming weeks could be triggered by the loss of this trendline.
ETH Price Resting in a Symmetrical Triangle
In a 4-H time frame, the ETH price has formed a symmetrical triangle. At press time, the price was holding over the 20-day EMA which might attract buyers.
Suppose the price triggers a breakout from the triangle, it may hit the 200-day EMA in a single move. Once the price surpasses the 200-day EMA, a strong bullish rally can be anticipated.
On the other hand, if the price displays a breakdown, buyers might panic. Fear among buyers could give a chance to the sellers and could dive below the crucial level of $2,500.
If the price sustains below the 2,500 level, a selling opportunity can be anticipated. Losing this level could trigger a bearish trend on a wider time frame.
Institutional Adoption and Long-Term Holder Confidence
According to recent data, top holders, which include institutional investors and whales, own 54% of the entire Ethereum supply, indicating that demand for the cryptocurrency is still high.
The price can be moved by these big holders, and their ongoing accumulation improves Ethereum’s long-term prospects.
Additionally, it was discovered that 74% of ETH holders had held onto their profits for more than a year, compared to just 4% who had done so for less than a month.
With the potential for large-scale sales, it demonstrates that the majority of investors today have a long-term outlook and steer clear of short-term swings.
Ted Pillows explained market sentiments by predicting that Ethereum would reach $10,000 during this cycle.
The long-term outlook is still favorable because it has the highest TVL, robust institutional adoption, and lower inflation than the majority of altcoins.