Does Increased Number of Ethereum Holders Hint a Bullish Rally?

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  • The ETH crypto price is trading above crucial EMAs. 
  • The annual inflation rate of the crypto is negative, resulting in -0.24%.

A recent X post from $Crypto_rand says there has been a surge of more than 3% in the addresses holding more than 10,000 ETH in the last 4 weeks. The data provided by Glassnode further strengthened that claim.

A surge in the trading activity of the crypto can also be witnessed as the value of the trading volume for Ethereum has advanced by 40% in the last 24 hours from the spot time. That leads to a good amount of liquidity in the crypto market. 

As Ethereum is the second-largest cryptocurrency in the global crypto market, its market cap value is $423.971B. At press time, the circulating supply of the crypto is 120.154M ETH. The maximum supply of the crypto is infinite.

There has also been an advance in the total value locked (TVL) for Ethereum, resulting in $62.186B. In the last 30 days, the token incentives of the crypto have also advanced by 20.3%.

Ethereum Crypto Derivatives Data Analysis

While the options volume for Ethereum has witnessed a decline of 51% over the last 24 hours from the time of writing, the derivatives volume has surged by 83%.

Ethereum
Ethereum Crypto Derivatives Liquidation Chart | Source: Coinglass

The long/short ratio of the crypto at press time is 0.9616, followed by a higher long liquidation in the last 24 hours. Despite this, a consistent surge in the open interest in crypto is visible on the Coinglass chart.

ETH Crypto Technical Analysis

After reaching a high of $3,974, the ETH crypto price has paused, experiencing some profit booking.

Ethereum
ETH Crypto Daily Price Chart | Source: Tradingview

Following a breakout from the descending triangle pattern on the daily chart, ETH surged by 25% within a few days. Despite this significant rise, the price shows a slight decline from its recent highs.

Looking forward, a crucial resistance level is identified at $3,780. If ETH can break above and sustain this level, it may indicate a continuation of the uptrend, suggesting further price increases in the near future.

ETH/USD Chart by TradingView

The technical indicators on the ETH coin’s daily chart also support the potential for an uptrend. Currently, the ETH price is finding support at the 50-day EMA.

Additionally, the 50-day and 200-day EMAs have maintained a golden crossover for an extended period, reinforcing the bullish sentiment.

However, the MACD presents a conflicting signal as it is trading in a bearish crossover. Despite this, the MACD and the signal line are positioned in a bullish trajectory, indicating underlying positive momentum.

Meanwhile, the RSI has declined below the 50 and 14-day SMA, signaling weakness in the crypto’s momentum. It would be prudent to wait for the RSI to rebound above the 50 level to confirm renewed strength in the uptrend.

Summary

Ethereum holders have increased by 3%, suggesting a bullish sentiment. Trading volume surged by 40%, indicating strong liquidity.

Ethereum’s market cap stands at $423.971B, with a circulating supply of 120.154M ETH. Despite some technical bearish indicators, the overall sentiment and trading activity point towards a potential uptrend.

The support levels for the Ethereum crypto are $2825 and $3365, followed by the resistance levels of $4084 and $5000.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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