- Ethereum (ETH), which has retested the $2,100 level, is ready for an upward movement as the world’s second-largest cryptocurrency.
- According to Santiment, while Ethereum’s market value is slightly above $2,200, major exchange wallets actively transfer coins to smaller wallets.
- On a positive note, traders are observing the $2,500 level as a potential target, expecting a significant push from market participants who want to drive Ethereum in that direction.
Is the Decrease in Ethereum’s Exchange Supply Accelerating the Price Momentum? Current outlook on ETH price!
Ethereum’s Exits from Exchanges Are Increasing
Ethereum (ETH), having retested the $2,100 level, is ready for an upward movement as the world’s second-largest cryptocurrency. At the time of writing, the Ethereum (ETH) price is at $2,213, with a market value of $264 billion. Despite the volatility in the current ETH price, the supply of Ethereum on exchanges has reached a new low. This is a positive indicator showing that more investors are willing to hold their ETH for the long term.
According to on-chain data provider Santiment, while Ethereum’s market value is slightly above $2,200, major exchange wallets are actively transferring coins to smaller wallets or withdrawing them entirely from exchanges. In the last 24 hours, there has been a shift in these major wallets, with a total of 240,000 ETH, representing a 2.99% decrease in the amount of coins they hold.
Despite crypto analyst Michael van de Poppe noting the strength of altcoins, he suggests that there might not be a definitive trend at this point. Ethereum (ETH) currently shows a lack of momentum, but a change is expected in the coming weeks.
Van de Poppe anticipates a flow of funds from Bitcoin to Ethereum, and this could lead to strong performance in altcoins in the first quarter of 2024, possibly coinciding with a peak in Bitcoin dominance.
ETH Price Movement
During Tuesday’s trading session, Ethereum attempted an early rally amid the ongoing market noise. The $2,100 level emerges as a critical support level that has played a significant role in the past. This level has been a repeated challenge by an ascending triangle in the overall market as a resistance point. Short-term pullbacks are expected to find support around this area. In the event of a collapse below $2,100, it is crucial to note that the 50-Day EMA is expected to provide significant support, warranting close monitoring around this zone.
On the positive side, traders are observing the $2,500 level as a potential target, expecting a significant push from market participants who want to drive Ethereum in that direction. Beyond this point, the $2,700 level comes into focus. The prevailing trend indicates that value is consistently captured with each downturn, reflecting an active pursuit of value by the majority of crypto traders.
However, a collapse below the 50-Day EMA could have adverse consequences for Ethereum. Additionally, attention is drawn to the market’s sensitivity to changes in interest rates, especially in the United States and other bond markets. There is a high probability that a revival in interest rates could exert pressure on the market, potentially leading to a broader decline not limited to Ethereum.
