Ethereum’s short-term target is $4,850, but THIS must happen first!

ETH Spot Inflow/Outflow data reveals that exchanges have witnessed $35.6 million worth of outflows.
76% of top traders on Binance hold long positions, while 24% hold short positions.

As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find myself intrigued by Ethereum’s current situation. The technical analysis suggests that ETH is poised at a crucial resistance level, which historically has led to selling pressure. However, the recent outflows worth $35.6 million from exchanges and the strong bullish sentiment among traders, as indicated by the 76% long position on Binance, are encouraging signs.

The globally recognized digital currency Ethereum [ETH], which currently ranks second in terms of market capitalization among all cryptocurrencies, has recently piqued the interest of both large-scale investors (whales) and regular investors, thanks to its intriguing price movements.

Ethereum’s technical analysis and key levels

Based on the technical analysis by AMBCrypto, Ethereum appears to be nearing a significant level of resistance where it’s finding difficulty pushing through.

Previously, the value of ETH has scaled up to this point on four occasions, only for it to be met by heavy selling, leading to substantial drops in its price. Such recurring trends could account for the increased activity among large investors (whales) and regular traders.

If Ethereum (ETH) manages to surpass its current resistance level at around $4,100 and concludes a daily trading period above this point, we might expect a potential rise of approximately 18%. This could take ETH up to roughly $4,850 in the near future.

In a positive light, Ethereum (ETH) is currently trading above its 200-day Exponential Moving Average (EMA) on the daily chart, suggesting that it’s in an upward trend.

Bullish on-chain metrics

It seems the general feeling towards the crypto market is optimistic, with Bitcoin surpassing $100,000 again, and other digital currencies experiencing further gains.

It appears that this viewpoint is indicative of an impending surge for Ethereum, as whales and traders have demonstrated significant interest and faith in the cryptocurrency, based on data from Coinglass.

As a crypto investor, I’ve noticed some intriguing trends in my recent analysis of Coinglass’s Ethereum (ETH) Spot Inflow/Outflow data. It appears that exchanges throughout the cryptocurrency realm have experienced substantial ETH outflows totaling approximately $35.6 million. To put it simply, “outflows” in our crypto world mean the transfer of assets from exchange platforms to individual wallet addresses. This could potentially indicate a shift in investor behavior or increased activity in off-exchange transactions.

This data suggests a possible increase in positive trends, offers a great chance for purchasing, and minimizes the possibility of excessive selling.

Traders strongly betting on long positions

Apart from whales, it seems that traders are also expressing optimism towards the altcoin. According to Coinglass, the ETH Long/Short ratio on Binance is at 3.17 right now, suggesting a significant level of bullishness among traders.

Currently, 76% of top traders on Binance hold long positions, while 24% hold short positions.

By taking into account these chain-based statistics, it seems that the bulls have a strong control over the asset. This situation might enable Ethereum to break through one of its most robust resistance points.

Read Ethereum’s [ETH] Price Prediction 2024–2025

At press time, ETH is trading near $3,990, with a price gain of over 3.10% in the past 24 hours.

Over that specific timeframe, there was a 9% decrease in trading volume, suggesting less involvement from traders and investors as compared to the preceding day.

2024-12-08 00:55

Ethereum’s technical analysis and key levels

Bullish on-chain metrics

Traders strongly betting on long positions

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