Ethereum appears to have been thriving for the previous few weeks, drawing interest from analysts and investors. It seems that a number of fundamental and technical elements are preparing the way for a stunning ascent. Therefore, the most pressing concern on everyone’s mind is: Will ETH blow up?
Collapsing selling pressure: a sign of optimism
Subtle clues are common in the cryptocurrency sector, and the sharp decline in selling pressure on Ethereum in recent days is one of the most striking.
In one day, about 80 million dollars’ worth of Ethereum was removed from exchanges. Why is this so important?
Traders are less likely to sell in the near future when they remove assets from platforms. It’s possible that this behavior will serve as the impetus for an upcoming bullish rise.
Simultaneously, the derivatives market’s volatility has also dropped. Less volatility reduces the risk of liquidation for open positions and provides a more solid basis for a potential bullish trend. It seems like everything is set up for Ethereum to continue growing.
Cryptocurrency ETH accumulation: a reliable indicator
Another alarming indicator is the increase in addresses that contain substantial amounts of ETH, especially more than $1 million.
Although this information might appear anecdotal, it actually shows how major holdings and institutional investors are becoming more confident. The market becomes increasingly aware that something big is about to happen as these players amass.
HODLers, or long-term holders, are not the kind to panic over short-term fluctuations. Their collecting strategy shows that they have a lot of hope for Ethereum.
This occurrence supports the notion that ETH may soon see a real price explosion, especially when combined with the decline in supply on trading platforms.
Technical viewpoints
Technically speaking, Ethereum just emerged from a symmetrical triangle, which is a pattern frequently connected to notable price fluctuations.
In this case, the upward breakout points to a potential 23% rise. Given the significant resistance levels that Ethereum has already successfully surmounted in recent days, that is no trivial matter.
However, if this bullish trend is to fully materialize, the bulls will need to keep defending certain support levels.
The slightest sign of weakness could lead to a loss, but if the bulls hold fast, the gains over the next few weeks could be spectacular.
It appears that everything points to Ethereum being about to undergo a turning point. Because of the massive accumulation of large investors, the reduction in selling pressure, and positive technical signs, the cryptocurrency market is poised for a potential explosion. Surprises are always possible in the crypto world, though. The time may be right for significant profits for those who dare, but caution is still urged. Bitcoin is on the verge of collapsing in the meanwhile.
