Ethereum (ETH) price rise is on the cards, given the investors are exhibiting positive signs through their actions.
The question, however, is how far this potential rise can go before it comes to a halt.
Ethereum Investors Remain Optimistic
Ethereum’s price may have a shot at climbing the charts soon as ETH holders continue to accumulate. The exchange net position change shows that outflows have dominated the market since the beginning of the month. In the past three weeks, over 1.1 million ETH worth over $3 billion have been moved out.
Outflows here do not point to money leaving the market but rather ETH leaving exchange wallets. This is a positive sign as it means one of two things: investors are buying ETH off exchanges or moving their holdings to cold wallets.
Ethereum Supply Exchange Position Change. Source: Glassnode
Since the market is not entirely bearish, it is likely the former case.
However, there is one hiccup in this potential rise, and that is how far it could go. Looking at the overall profit ratio, it appears that any rally that ETH notes will be short-lived. This is because over 90% of the supply is already in profit, and crossing 95% will establish a market top.
A market top refers to the peak price level reached by a financial market or asset before a decline or correction begins. It indicates a potential reversal in bullish momentum and suggests a potential downturn in prices ahead.
Read More: How to Invest in Ethereum ETFs?
Ethereum Supply in Profit. Source: Santiment
Thus, as long as ETH does not hit that threshold, it could chart gains.
ETH Price Prediction: Securing Support
Ethereum’s price is struggling to flip the 50% Fibonacci Retracement level into a support floor. Marked at $3,582, this level would enable ETH to initiate recovery and reclaim the profits it recently lost.
The bullishness exhibited by the investors could push the price beyond this resistance and towards $3,700. Ideally, this would enable a run up to $3,830, which is equivalent to the 61.8% Fib level.
Read More: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum Price Analysis. Source: TradingView
However, failure to secure $3,582 as support would make it difficult for Ethereum’s price to note any rise. The likely outcome will be a gradual decline to 38.2% Fib line at $3,336. Losing this support as well would invalidate the bullish thesis completely.
