For several weeks, Ethereum seems to be in full swing, capturing the attention of investors and analysts. A combination of technical and fundamental factors appears to be setting the stage for a dramatic rise. So, the question is burning on the lips of all observers: are we about to see ETH explode?
Selling pressure collapses: a bullish signal
The crypto world often relies on subtle signals, and one of the most telling in recent days is the drastic reduction in selling pressure on Ethereum.
In the span of 24 hours, nearly $80 million worth of ETH was removed from exchanges. Why is this so crucial?
When traders withdraw their assets from platforms, it suggests that they are less likely to sell in the near future. This behavior could well be the catalyst for an imminent bull rally.
At the same time, the volatility of the derivatives market has also decreased. Less volatility means lower liquidation risk for open positions, providing more stable ground for a potential upward move. It seems that all the conditions are in place for Ethereum to continue its rise.
The accumulation of ETH crypto: a strong indicator
Another striking indicator is the increase in the number of addresses holding substantial amounts of ETH, namely over $1 million.
This detail might seem anecdotal, but in reality it demonstrates the growing confidence of institutional investors and large investors. The more these players accumulate, the more the market senses that something significant is brewing.
HODLers, these long-term holders, are not the type to panic in the face of short-term fluctuations. Their accumulation strategy shows that they believe in a bullish future for Ethereum.
This phenomenon, coupled with the drop in supply available on exchange platforms, reinforces the idea that ETH could soon experience a real price explosion.
Technical perspectives
From a technical perspective, Ethereum recently broke out of a symmetrical triangle, a pattern often associated with significant price movements.
In this case, this exit from the top indicates an upside potential of around 23%. This is no small thing, especially when you take into account the key resistance levels that Ethereum has already managed to break through in recent days.
However, so that this upward trend fully materializes, it is crucial that the bulls continue to defend certain support levels.
The slightest sign of weakness could result in a reversal, but if the bulls hold on, the gains could be dramatic in the weeks to come.
Everything seems to indicate that Ethereum is on the verge of a decisive moment. Between reduced selling pressure, massive accumulation by big investors, and positive technical signals, the crypto market is bracing for a potential explosion. However, as always in the crypto world, surprises are never far away. Caution remains in order, but for those who dare, the moment could be ripe for significant gains. Meanwhile, bitcoin is on the verge of a crash.
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