In recent days, the crypto market has witnessed a surge of activity, with Bitcoin repeatedly knocking on the $35,000 level. Riding on Bitcoin’s bullish efforts, Ethereum traders are seizing the opportunity to push the price of ETH beyond the $1,900 zone. With continued negative Netflow suggesting that more Ethereum is being bought than sold, analysts are growing increasingly positive about ETH’s potential to cross the $1,900 mark. This trend develops a bullish sentiment among investors, accelerating their confidence to buy more ETH in anticipation of future gains.
Ethereum’s Confidence Shines Despite Network Issues
A number of prominent altcoins, such as Solana (SOL), XRP, and Cardano (ADA), have surpassed Ethereum in performance, yielding returns of 75%, 37%, and 34%, respectively, over the past month. This performance gap indicates that the challenges facing ETH extend beyond network hurdles or a slump in the DeFi and NFT sectors.
A significant problem for the Ethereum network is the rising transaction costs, especially for operations carried out by smart contracts. The average transaction fee over the past week has reached $4.90, which is discouraging for the use of decentralized applications (DApps).
Furthermore, the amount of Ether deposited on the Ethereum network has fallen to its lowest since August 2020. However, despite these setbacks, Ethereum continues to charge ahead, as indicated by on-chain metrics.
Information from IntoTheBlock indicates that Ethereum’s Netflow has remained negative for over the last four days, suggesting a positive outlook as the amount leaving exchanges exceeds what’s coming in. This trend points to reduced chances of selling among investors as exchange reserves decline, with the current Netflow at -27,700 ETH.
In addition, Ethereum’s Open Interest (OI) has hit a peak not seen in three months, with traders actively initiating futures contracts, driving the value up to $6.6 billion.
What’s Next For ETH Price?
Over the last few hours, Ether attempted to surpass the immediate resistance level at $1,900 due to bullish efforts, only to be driven back under by bearish resistance, showcasing significant sell-offs at higher prices. As of writing, ETH price trades at $1,896, decreasing over 0.3% in the last 24 hours.
The next move for the bears would be to attempt to drive the price down towards the solid support mark at $1,860. This level is crucial to watch, as buyers might defend the level strongly. If the price makes a rebound from this level, the ETH price can break out above the upper trend line. In this case, we might see the price consolidating around $1,983-$2,024.
Conversely, if bulls fail to defend the $1,860 level, the ETH price might decline sharply. As a result, the ETH price might hover around $1,747 for a while. If sellers continue their domination, ETH price might witness another decline, stabilizing around $1,670.
Credit: Source link