Ethereum Price Shows Signs of Recovery, Trading at $2,244
After a recent dip to $2,100, the price of Ethereum (ETH) has started to show signs of recovery, currently trading at $2,244. This bounce back suggests a potential bullish trend for the cryptocurrency, with the possibility of reaching new yearly highs in the near future.
The Relative Strength Index (RSI) for ETH is currently hovering around 42, indicating a slow but steady upward momentum. Additionally, the Awesome Oscillator (AO) is also showing a decline in bearish momentum as it approaches the zero line. If the mean level is flipped, it could signal a bullish momentum that could push the Ethereum price higher.
Spike in Whale Transactions Suggests Investor Buying the Dip
On January 3, there was a spike in whale transaction count, which indicates that investors may be buying the dip in Ethereum. This uptick in activity coincided with a massive sell-off, suggesting that institutional investors may be taking advantage of the lower price levels.
Whale transactions track transfers worth $100,000 or more, making them a significant indicator of market activity. The fact that this uptick in transactions occurred during a sell-off adds even more credibility to the bullish outlook for Ethereum.
On-Chain Metrics Point to Potential Resistance-Free Climb to $2,800
On-chain metrics for Ethereum suggest that there may be little to no resistance up to the $2,800 level. IntoTheBlock’s Global In/Out of the Money (GIOM) indicator reveals that the immediate key hurdle at $2,347 is relatively weak. Overcoming this level could set the stage for Ethereum to climb to the next critical level of $2,859.
At this level, there are approximately 10.77 million addresses that accumulated 5.2 million Ether at a loss. This could potentially lead to a spike in selling pressure as these holders try to break even. However, if Ethereum is able to surpass this resistance, it could continue its ascent.
Flip of $2,145 Level Would Invalidate Bullish ETH Outlook
While Ethereum’s outlook seems bullish at the moment, it is important to note that a flip of the $2,145 level into resistance would invalidate this bullish thesis. If this were to happen, ETH could slide down to the $2,000 psychological level, representing a 6.5% drop from its current price.
Investors will need to monitor the price action closely to determine if Ethereum is able to maintain its bullish momentum or if it faces a reversal.
Ethereum Price Set to Move Higher, Supported by On-Chain and Technical Indicators
Overall, the price of Ethereum seems poised for a potential move higher. On-chain metrics, such as the spike in whale transactions, suggest that investors are buying the dip, while technical indicators point to a bullish momentum.
If Ethereum is able to overcome key resistance levels and continue its climb, it could reach new yearly highs and potentially push towards the $2,800 level. However, investors should remain cautious and monitor the market closely, as a break of key support levels could invalidate the bullish thesis.
Analyst comment
Positive news. The price of Ethereum is showing signs of recovery after a dip, indicating a potential bullish trend. On-chain metrics and technical indicators support a potential move higher, with the possibility of reaching new yearly highs. However, investors should monitor key support levels as a break could invalidate the bullish outlook.
