ETH Price Surge: Can ETH Maintain Its Bullish Trend?
ETH Price Surge – Ethereum’s (ETH) market strength is showing signs of recovery following a notable 16.81% decline over the past month. In the last 24 hours, ETH has seen a bullish movement, gaining 2.87%, bringing its price to $2,718.88 at the time of writing. This upward movement is fueled by strong buying activity, particularly among U.S. retail investors, signaling the potential for a broader market shift.
Historic Patterns Indicate Bullish Potential for ETH
On-chain data is showing that Ethereum’s Market Value to Realized Value (MVRV-z) score, according to Glassnode, is forming a pattern reminiscent of previous movements that preceded major price rallies. The MVRV-z score helps identify whether an asset is overvalued or undervalued based on its historical chart position. The pattern suggests that Ethereum may be entering a bullish phase, similar to past cycles when ETH entered the green zone on its MVRV-z chart.
The analyst concludes that ETH has not yet entered a full bull market in this cycle, but with the price beginning to rise from the green zone, there could be significant upside potential in the coming weeks.
ETH Supply on Exchanges Decreasing Amid Growing Demand
Further supporting this bullish outlook, CryptoQuant data shows a significant decrease in ETH reserves on exchanges. Since February 2nd, approximately 714,129 ETH has been withdrawn from exchanges, indicating rising demand as investors move their assets into private wallets. This decline in available ETH on exchanges is an indication of growing accumulation.
The Coinbase Premium Index, which tracks the buying and selling activity between Coinbase and Binance, shows that U.S. retail investors are playing a pivotal role in this surge, with the index currently sitting at 0.0255 in the green zone. This suggests that U.S. investors are actively accumulating ETH.
Surge in Buying Volume Indicates Bullish Sentiment
The Taker Buy/Sell Ratio also saw a notable increase, rising from 0.967 to 1.084. A ratio above 1 indicates more buying activity than selling in the derivatives market, which further strengthens the bullish sentiment surrounding ETH. As U.S. investors continue to accumulate on the spot market and derivatives market activity increases, ETH’s rally appears to be gaining momentum.
In conclusion, Ethereum’s recovery and the growing buying activity could signal a potential continuation of its bullish trend. However, as always, investors should carefully monitor market conditions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment