Ethereum on the Verge of a Significant Rise, $3,000 Level to Be Reached Soon?
2024-10-18
Ethereum token holders are feeling joy as the price of ETH has increased today. In the last 24 hours, Ethereum's highest price was $2,651. Currently, ETH is trading at $2,628 with an increase of 0.13%.
Even though the price increase tends to be small, Ethereum's buying trend is more dominant than its selling trend. In fact, the ETH MACD line is also above the boundary line which means, Ethereum has a possibility to get bullish in the near future.
Source: Bitrue Market
The broader cryptocurrency market is indeed experiencing a surge, especially after Bitcoin rose above $67,000, which has contributed to an increase in the crypto fear and greed index, now above 70.
Price Targets and Key Obstacles
If the bullish divergence indicated by MACD materializes, Ethereum could surpass the resistance level of $2,687 and set a new target of $2,900. This potential move depends on various on-chain metrics that suggest a rally could be imminent.
One of the most promising signs for Ethereum is the surge in outflows from exchanges. On October 15, outflows reached a two-week high, with more than 589,611 ETH withdrawn from exchanges, worth more than $1.5 billion.
This trend indicates a lack of selling intentions among traders, which can reduce selling pressure and pave the way for price recovery.
A significant increase in outflows suggests that investors are moving their assets out of exchanges, perhaps in anticipation of future price appreciation. Net flows for Ethereum are at their highest level since late September, suggesting that selling pressure may be easing.
Increased Speculative Interest
Another factor influencing Ethereum's price potential is the increasing Open Interest (OI) in the market. Currently, Ethereum's OI stands at around $12.76 billion, reflecting increased participation from derivatives traders.
This spike indicates high speculative interest in Ethereum, even amidst relatively stable price movements.
An increase in OI without significant price changes often leads to increased volatility. If the price experiences a strong move in any direction, traders may start to close out their positions, potentially resulting in large price fluctuations.
Active Addresses Show Growing Demand
The number of active Ethereum addresses has also seen a significant increase, reaching 349,507 on October 15, the highest level in the past month. This increase is a positive sign, indicating increased demand for Ethereum and growing network activity.
Quoted from Into The Block, where around 30% of daily active addresses are now in profit, marks the highest level in the past month. Simultaneously, the number of active addresses losing money has fallen to 13%.
This shift in profitability among active users indicates that more traders are experiencing profits, further increasing the bullish sentiment around Ethereum.
Supporting Fundamental Factors
The significant increase in Ethereum outflows from exchanges shows that investors are increasingly confident in the long-term prospects of this asset. They tend to store their Ethereum in private wallets rather than on exchanges, reducing selling pressure and supporting price increases.
An increase in Open Interest shows that there is high speculative interest in Ethereum. This means more traders are getting involved in the Ethereum derivatives market, which can increase volatility but also strengthen existing trends.
The increase in the number of active Ethereum addresses indicates growth in users and activity on the Ethereum network. This is a positive sign indicating growing demand for Ethereum.
Read more about Ethereum (ETH):
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Ethereum (ETH), Market Cap, Price Today & Chart History
Conclusion
Overall, Ethereum's path to $3,000 looks increasingly likely, supported by strong bullish indicators such as an increase in active addresses, significant exchange outflows, and positive MACD divergence.
Although there are still some concerns due to negative capital flow indicators, the overall market sentiment and technical signs suggest that a price rally may occur.
As Ethereum continues to navigate this important moment, traders and investors should monitor these developments closely. If the cryptocurrency can successfully break through a key resistance level and maintain its upward momentum, the $3,000 target could soon be reached.
FAQ about Ethereum
Q1. What is a bullish divergence on an Ethereum chart?
Bullish divergence is a condition where price forms a higher pattern, while indicators such as MACD form a lower pattern. This is often the initial signal of a trend reversal to bullish.
Q2. Why are outflows from exchanges a positive indicator for Ethereum price?
The outflow from exchanges shows that investors are increasingly confident in Ethereum's long-term prospects and are likely to store their coins in personal wallets. This reduces selling pressure and supports price increases.
Q3. What is meant by Open Interest (OI)?
Open Interest is the total number of contracts that are still open in a derivative market. An increase in OI indicates high speculative interest in the asset.
Q4. What are the risk factors to consider when investing in Ethereum?
Some risk factors to be aware of are cryptocurrency market volatility, competition from other blockchain projects, and changes in government policies that may affect cryptocurrency prices.
Disclaimer: The content of this article does not constitute financial or investment advice.
