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Ethereum (ETH), the world’s second-largest cryptocurrency by market cap appears bullish and is poised for a notable upside rally due to its bullish price action and favorable on-chain metrics. In addition to this, whales and investors have moved a significant amount of ETH from the exchanges in the past week.
Fall of Ethereum Exchange Reserves
According to the on-chain analytics firm CryptoQuant, Ethereum’s exchange reserves have dropped from $42 billion to nearly $38.5 billion, a decline of approximately $3.5 billion. This significant decline in the exchange reserve suggests a potential sign of accumulation or acquisitions by whales or investors.
Additionally, the decline in exchange reserves has occurred near a strong support area, where ETH is currently trading.
Ethereum Technical Analysis and Upcoming Levels
According to expert technical analysis, ETH appears bullish and is moving within a bullish channel pattern, while forming higher high and higher low. Currently, ETH is at the lower boundary of the pattern, forming a higher low.
Based on the historical data and price correction, there is a strong possibility that the asset could jump by 12% to reach the resistance level of $2,800 in the coming days. In fact, this level serves not only as resistance but also aligns with the 200-day Exponential Moving Average (EMA) and the upper boundary of the bullish pattern.
This bullish thesis will only hold if ETH remains above the $2,400 level, otherwise, it may fail.
Bullish On-Chain Metrics
ETH’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, ETH’s long/short ratio currently stands at 1.36 over the past four hours, indicating strong bullish sentiment among traders. During the same period, 57.76% of top traders opened long positions, while 42.24% opened short positions.
ETH’s open interest has jumped by 4.9% over the past 24 hours and 3.1% over the past four hours. This rising open interest suggests growing trader interest in the asset, leading to the formation of new positions.
While examining bullish on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and may continue to support it in the upcoming rally.
Current Price Momentum
At press time, ETH is trading near the $2,520 level and has experienced an upside rally of 1.20% over the past 24 hours. During the same period, its trading volume has jumped by 90%, indicating heightened participation from traders and investors amid a potential upside rally.