Ethereum’s price has spiked significantly following its ETF approval. However, the market is yet to break its recent high.
Technical Analysis
By TradingRage
The Daily Chart
On the daily timeframe, the price broke above the large descending channel back in May. However, it has been consolidating between the $3,600 and $4,000 levels since, failing to continue its upward trajectory. Yet, with the Relative Strength Index still showing values above 50%, the momentum is seemingly in favor of a further continuation past the $4,000 resistance level and toward a new record high.
The 4-Hour Chart
Meanwhile, on the 4-hour timeframe, the price action has been choppy over the past couple of weeks. The market has tested the $4,000 area a couple of times already but has failed to break above and is hovering around the $3,800 mark.
Yet, the 4-hour RSI has recently broken above the 50% level, indicating that the momentum is shifting bullish. Therefore, a breakout above the $4,000 level seems likely in the short term.
Sentiment Analysis
By TradingRage
Exchange Reserve
While Ethereum’s price has been consolidating below the $4,000 resistance level, significant events are seemingly unfolding in the background. This chart demonstrates the ETH exchange reserve, which measures the total amount of ETH held in exchange wallets.
It is evident that the exchange reserve has recently plummeted below its 30-day moving average. This aggressive drop points to a potential accumulation happening during the current consolidation as the market gets ready to rally higher.
Overall, this significant decline in exchange reserve can be very bullish for ETH, as it reduces the supply side of the equation.
