- The dominance of long-term bondholders has risen sharply in recent days
- At the time of writing, Ethereum appeared to be testing its support level
Ethereum [ETH] is back in the news, with the altcoin slowly approaching the $2.5k level at the time of writing, raising hopes of a bull rally. This steady increase could have created more bullish sentiment in the market. However, will that be enough to drive further growth on the price charts?
Long-term holders show confidence in Ethereum
The price of Ethereum has risen slightly over the past 24 hours and was trading at $2,465.36 at the time of writing. In the meantime, Ali, a popular crypto analyst, shared a tweet highlighting an important development.
The price of ETH has been moving in an upward channel, with the altcoin judiciously testing support and resistance for some time now.
The tweet also stated that the risk-reward ratio was increasing Ethereum is too good to pass up for a long position. The analyst set his stop below $1,880, with a target price of $6,000.
That’s why AMBCrypto took a closer look at whether long-term holders actually show confidence in the king of the altcoins. According to our analysis of Glassnode’s data, the long liquidation dominance of ETH’s Futures surpassed 80. When the benchmark reaches 50, it means that the dominance of STH and LTH is the same.
Therefore, at the time of writing, it was clear that LTHs were showing confidence.
Source: Glassnode
The fact that LTHs were dominant in the market was further proven by the long liquidations of the token Futures, which, after a sharp decline, started to rise again. In addition, we also checked ETH’s long-term holder NULP.
To start with, the metric only takes into account UTXOs with a lifespan of at least 155 days and serves as an indicator to assess the behavior of long-term investors. At the time of writing, the metric exuded optimism, meaning LTHs’ confidence in ETH was high.
Source: Glassnode
AMBCrypto also previously reported that not only LTH, but also whales have been optimistic. The report notes that whale balances have grown significantly over the past two weeks, as they held 56.68 million ETH in mid-October.
What can you expect in the short term?
While long-term sentiment seemed positive at the time of writing, AMBCrypto looked at where ETH might go in the short term. According to our analysis, ETH was testing support at $2,415k at the time of writing. A successful test could push ETH to $2.6k on the charts.
Read Ethereums [ETH] Price prediction 2024–2025
In the event of a bounce above that resistance, it won’t be surprising to see Ethereum reach $2.7k in the near term.
Source: TradingView
