[ad_1]
Ethereum (ETH) investors seem optimistic that the cryptocurrency’s recovery above $3,400 could be the start of better things. This assertion may stem from their recent behavior, as many Holders have not sold despite a recent price drop.
Will ETH price increase sharply? This on-chain analysis examines that possibility.
Ethereum Yields Low, Optimism Improves
On December 30, ETH price dropped below $3,400 after a short period of consolidation. By this time, the value had increased above that level. Research shows that Ethereum investor actions played a key role in helping the price recover quickly.
According to IntoTheBlock, coin holding times have increased by 40% in the past seven days. Holding period measures how long a cryptocurrency is held without being sold. When it increases, this shows that Holder is not selling, otherwise it will be the opposite.
Because this is the case with ETH, this shows that Ethereum investors are bullish on the short-term price action. Therefore, if the holding period continues this momentum, the value of the cryptocurrency could rise higher than its current position.
Despite optimism and recent price increases, transaction volumes in on-chain returns have decreased. On the last day of 2024, the profit trading volume was 995K ETH. Currently, it has dropped to 661 ETH.
This decrease further reinforces the bullish sentiment of Ethereum investors. If this number continues to decline, Ethereum price is less likely to experience selling pressure. Instead, the cryptocurrency could be headed for a significant uptrend.
ETH Price Prediction: Opportunity to Rise Past 4,000 USD Is Near
From a technical perspective, the bulls have successfully defended the support at $3,328. Furthermore, the Money Flow Index (MFI) has increased. MFI is a technical indicator that measures buying and selling pressure around a cryptocurrency.
When the index increases, it shows buying pressure. But when it falls, it shows selling pressure. With the current situation, ETH could soon close above $4,111. If confirmed, the price could jump to $4,500.
However, if the bears drag Ethereum price below the $3,328 support, this may not happen. Instead, ETH could slide to $3,081. In a very optimistic scenario, it could drop to $2,878.
General Bitcoin News
[ad_2]
