- Bitcoin and Ethereum are struggling to outperform key price levels.
- Positive funding rates indicate optimistic investor sentiment.
Bitcoin [BTC] and Ethereum [ETH] have recently experienced significant price resistance. BTC has struggled to cross the $30,000 mark, while ETH has consistently struggled to cross the $2,000 mark. Surprisingly, holders showed stronger convictions than sales and held tighter to their assets.
Read Bitcoin [BTC] Price Forecast 2023-24
Bitcoin and Ethereum Struggle to…
Bitcoin broke through the $30,000 price zone on the daily timeframe chart around April 11, but struggled to hold this level for an extended period of time. It then dropped below $30,000. At the time of writing, it was trading at around $26,900, reflecting a small gain.
The price range tool indicated that BTC is down more than 10% since testing $30,000.
Source: TradingView
Additionally, a closer look at Ethereum in the daily time frame revealed that it hit the $2,000 mark in April. Unfortunately, the upward momentum was short-lived, lasting less than six days.
Since then, ETH has failed to surpass and maintain that price range. At the time of writing, it was trading at around $1,800, reflecting a small gain of less than 1%.
Source: TradingView
Self-determination on the rise
As Bitcoin and Ethereum prices continue to fluctuate, more and more holders are choosing to secure their assets. Recent data from Sanitation revealed a drop in BTC and ETH supply on exchanges.
The chart indicated that the current percentage of BTC supply on exchanges was the lowest since December 2017. Similarly, the percentage of ETH supply on exchanges was the lowest since 2015.
Source: Sentiment
At the time of writing, the supply of BTC on exchanges was around 10%, while the supply of ETH was around 5%. This drop in supply on exchanges could signal an expected price increase and a future bull run for both cryptocurrencies.
Current net flow and funding rate
Analysis of Ethereum’s Netflow data at CryptoQuant showed that no substantial flow has yet to come in recent days. However, there was more outflow than inflow during this period. The Netflow was negative at the time of writing, indicating an outflow of more than 14,000 ETH.
On the other hand, Bitcoin has experienced a more notable flow in recent days, but like Ethereum, the dominant trend is the outflow per CryptoQuant. At the time of writing, Netflow for Bitcoin was negative, although there were small positive flows in the previous days.
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Investors have maintained optimistic sentiment even with the remarkable movement of ETH and BTC off-exchange. Dates from Mint glass revealed that funding rates for BTC and ETH have been consistently positive across exchanges.
The suggested that most investors are betting on a future price increase for both cryptocurrencies.
