The Ethereum network, the second largest cryptocurrency by market capitalization, has recently witnessed an unusual but remarkable trend. For the first time in 6 years, the number of Ethereum’s exchange deposit transactions has fallen to an all-time low. The question on the mind of every trader, investor, and enthusiast is, “What does this mean for the price of Ethereum (ETH)? Could it be a springboard for a jump to the $2,000 mark?
Ethereum’s Exchange Depositing trades reach 2017 levels
As uncertainties surrounding the US debt ceiling and potential interest rate hikes weigh heavily on the cryptocurrency market, leading assets such as Bitcoin and Ethereum struggle to provide a definitive outlook. Nevertheless, our research suggests burgeoning bullish sentiment poised to propel ETH’s price on an upward trajectory.
After closely examining the pre-deposit transactions of the Ethereum exchange, we have noted a significant multi-year low today, with a low of 9,592 transactions. This is a remarkable observation, as the same level was last experienced on April 23, 2017, just before Ethereum began its inaugural bull run and hit the $1000 mark.
The number of exchange deposit transactions is a crucial data point for crypto analysis. This statistic provides a reliable indication of possible sell-off or price pressure. A large number of deposit transactions usually indicates an impending sell-off as more holders move their assets to exchanges.
Conversely, a low number suggests holders are withdrawing their assets, indicating optimistic sentiment as investors show less interest in selling their ETH holdings.
“The observed rebound in Ethereum price is indeed significant, possibly indicating a bullish phase in the coming months. The marked decline in deposit transactions ultimately points to a positive outlook for the asset.”
What to expect from the next ETH price?
Despite opening this week with a positive rally, Ethereum encountered a solid rejection near USD 1,870. After this, the value of ETH is on a downward spiral, finding a safety net at the USD 1,760 level. Nevertheless, Ethereum’s latest recovery from its support threshold, coupled with its rise past immediate Fibonacci levels, has revived bullish optimism.
At the time of writing, ETH price is trading at $1,802, up more than 0.15% in the past 24 hours. Analyzing the 4-hour price chart, Ethereum experienced significant buying pressure today at USD 1,780, pushing the price to an intraday high of USD 1,812.
If ETH price continues its current momentum and breaks above its immediate hurdle of EMA50 at $1,815, the asset could rise to its next resistance of $1,877. A breakout above its last resistance will clear the way to $2K.
Conversely, unfavorable economic indicators can act as triggers, pushing ETH price below the vital $1,750 support level.
