- Ethereum exchange reserves recently dipped to a critical low point
- Key signs seemed to point towards a potential short-term bounce at key level
As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the current state of Ethereum. The recent dip in exchange reserves has me reminiscing about 2016, when history seemed to repeat itself in the most exciting way possible. While the bears have been dominating for three months now, the low reserve levels and robust demand at lower prices suggest that a short-term bounce could be imminent.
For the past three months, those betting against Ethereum (ETH) have held the upper hand. However, a curious trend has emerged: Ethereum is flowing out of exchanges, implying that there may be growing accumulation at reduced prices, hinting at sustained demand. But for how much longer can this last?
As reported by Glassnode, there’s been a trend of Ethereum being withdrawn from exchanges. Moreover, the current Ethereum reserve levels have reached lows not seen since 2016, hinting at a similar pattern. This decrease in exchange reserves could potentially influence Ethereum’s price performance, as it did in 2017. So, is history about to repeat itself?
In 2016, a study looking back at Ethereum’s history found that it faced some challenges. The price of ETH reached its highest point at $18.36 in June, but then dropped below $12 in September and dipped down to $7.14 by December. However, after this dip, ETH began an incredible surge in 2017.
If Ethereum follows a similar trend in 2024 as it did previously, this could hint towards a robust surge in 2025. The evidence that Ethereum is being withdrawn from exchanges suggests a strong demand for the token at lower prices, and moreover, the speed at which ETH is being taken out has been increasing too.
Since July, Ethereum’s speed or rate of circulation has been increasing. If this trend persists, there may be a short-term shift towards a bullish market stance. This is further reinforced by strong consumer interest.
Nevertheless, the on-chain data suggests that the point where demand exceeds supply has not been reached yet.
Can Ethereum’s demand push for a pivot?
Based on the data from Ethereum addresses, it appears that there are more transactions sending Ether (ETH) than receiving it. At this moment, approximately 204,000 addresses were active in sending ETH compared to around 188,000 addresses that were active in receiving ETH.
Nevertheless, active addresses data also revealed another interesting observation.
Over the past couple of weeks, we’ve seen an increase in the number of addresses actively receiving Ethereum (ETH), while the number of addresses sending it has been decreasing. This trend might suggest a change in the balance between supply and demand. Additionally, this could be influenced by the current level of ETH’s price.
As an analyst, I’ve noticed that ETH‘s recent dip has propelled its price towards a significant support level around the $2,333 price point. This could be indicative of increasing anticipation for a potential shift or reversal in trend within this price range. Notably, it seems that the bear pressure is starting to subside, which might contribute to this optimistic outlook.
Although these findings were noted, it’s worth mentioning that the daily chart suggests the bulls haven’t fully emerged just yet.
Additionally, the Relative Strength Index (RSI) suggests that the bulls are still in control, and there may be further opportunities for a decline, potentially reaching prices similar to those observed in August’s lowest points.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- QUINT PREDICTION. QUINT cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
2024-09-06 13:11