Bitcoin made a U-turn, briefly touching $41,000 before stabilizing at $40,000 levels.
Not only did Bitcoin rise by nearly 4%, but the whole global cryptocurrency market did as well, with all major crypto coins rallying on the day.
Against the US Dollar, Ethereum has recently battled to hold above the $3,150 support level.
The price of ETH began a new slide below $3,100 and entered a negative zone. Currently the price is meeting resistance near $3,095 on the upside.
Will ETH Price Hit the $5k Mark?
On September 19, the price of Ethereum hit a swing low of $2,652 before rallying 83 percent in less than two months to reach an all-time high of $4,868.
This strong upswing was followed by a 55 percent drop to the swing low of $2,652. A triple bottom layout could be foreshadowed by these two touches on the same level.
In order for this technical formation to be complete, ETH must fall by 13% and reclaim the $2,652 support level. This move will complete the pattern and turn the bullish trend around.
In this circumstance, Ethereum’s price is anticipated to rally to $3,287, which is the 50% retracement level.
If the midpoint is cleared and turned into a support level, the way will be cleared for a move toward the range high of $4,868.
This run-up would be an 85 percent increase in total, and it’s likely to go all the way to the $5,000 psychological barrier.
On-Chain support the bullish outlook
The exchange net position change indicator, which measures the 30-day outflow of ETH, backs up this bullish view for the Ethereum price.
This statistic currently shows that almost 94,000 ETH has moved out of the wallets of centralized entities, indicating a decrease in sell-side pressure.
It’s worth noting that this is the sixth time such a large outflow has occurred, demonstrating the significance of this metric.
In addition, the number of one-hour active addresses on the Ethereum blockchain has surpassed 60,330, a new all-time high. This increase indicates that new users or investors are interacting with the Ethereum blockchain, which is a bullish sign.
Finally, the supply of ETH on exchanges properly reflects the long-term bullish forecast for Ethereum pricing. Since July 2020, this amount has been in a downward trend, falling from 29.69 million to 14.96 million, signifying an outflow of 11.73 million ETH in less than two years.
This development indicates that many investors are hesitant to sell and are instead transferring their holdings to cold wallets or DeFi platforms in order to earn interest, indicating that they are positive about the Ethereum price’s performance.