- Ethereum exhibited strong bullish momentum following a recent pullback.
- Network metrics showed a decrease in selling pressure and increased market participation.
- Notable on-chain activity included the transfer of a significant amount of ETH from a dormant wallet.
Ethereum’s resurgence paints a bullish picture, signaling a potential upward momentum amid decreased selling pressure and heightened market engagement.
Ethereum Picks Up Bullish Momentum After Recent Correction
Ethereum [ETH] demonstrated a solid bullish trend after experiencing a 13.25% price correction. Following this pullback, the price surged by 6%, reaching $3257.44 at the time of writing. This pattern, identified within the bullish flag formation, typically heralds a potential upward breakout. Ethereum is now setting its sights on the next resistance level, bolstered by renewed buying interest.
Dormant Wallet Activity Prompts Market Interest
In a significant development, a dormant Ethereum wallet experienced substantial activity. A transfer of 92,500 ETH, valued at approximately $294.9 million, was made to a new wallet after being inactive for over six years. This significant transfer, identified through on-chain tracking, suggested increased confidence in Ethereum’s market prospects.
Reduced Selling Pressure Indicates Potential Bullish Continuation
Further analysis of market metrics revealed intriguing insights. Exchange net flow data indicated that net deposits on exchanges were below the weekly average. This decline in deposits correlated with diminished selling pressure, as fewer Ethereum coins were moved to exchanges for sale. Additionally, the total number of active addresses surged by 39.14% compared to the previous day, underscoring growing market participation and interest in Ethereum.
Increasing Dominance of Long Positions
Another positive indicator for Ethereum’s bullish trend was the dominance of long positions in the market. The Funding Rate data showed that long-position investors were willing to pay a premium over short-position investors to maintain their positions. This sentiment highlighted leveraged investors’ confidence in a continued price rally for ETH.
Conclusion
In conclusion, Ethereum’s current market outlook signals a potential bullish continuation. Technical analysis points to a possible rally after retesting the bullish flag support level. On-chain metrics further support this optimistic scenario, with reduced selling pressure, increased market participation, and a significant amount of dormant ETH re-entering active circulation. All these factors combined suggest a probable rally towards the next resistance level, potentially around the $3565.33 mark.
