ETH Market Update: Is the Trend Moving in the Favor of Bulls?
The native token of Ethereum, ETH, has experienced a significant decline in price during the previous several days on the cryptocurrency market. Multiple indicators and measurements provide some insight on the present market scenario despite the directional ambiguity.
Price Movement of ETH: A 9% Retracement in 5 Days
ETH is currently trading at $1534, a 9% decline in price over the previous five days. The bears lost strength after this drop took ETH near the 50% RSI mark. The MFI’s reported inflows are beginning to level out in the meanwhile.
A Golden Cross Has Forme: This Is Good News for ETH Investors
The formation of a golden cross, when the 50-day Moving Average crosses over the 200-day MA from below, is a noteworthy event in the ETH market. Investors now have more positive expectations as a result of this being viewed as a bullish indicator.
Ethereum Outflows from Exchanges: A Good Sign
According to recent Glassnode notifications, ETH is leaving exchanges and its balance has fallen to a 4-year low of 18,946,696.667 ETH. The increase in the total amount of ETH locked in ETH 2.0 deposit contracts, which hit a new record high, can be attributed to this outflow.
Analyzing the market’s demand for ETH
The on-chain metrics research reveals that ETH demand is increasing. In recent days, the amount of ETH held by the top 1% of addresses has somewhat increased. The number of ETH addresses holding more than 1,000 coins has also marginally increased during the last three days, bucking the declining trend that has existed since the beginning of February.
Open Interest Changing Direction to the Positive
Open interest decreased in the second half of last week, but it is currently pivoting upward, suggesting that open interest has returned as the price exhibits positive indicators. The funding rate, however, is continuing on a declining trend, which would suggest that there isn’t much demand.
In conclusion, current metrics and indications suggest a potential optimistic result for ETH, however this is dependent on any unfavorable news or events that can cause an unanticipated selloff once more.