Ethereum (ETH) has recently surpassed the $2,700 mark and is showing strong indications of sustaining its upward momentum. This comes after a brief drop below $2,400 a week ago, which had caused some concern about the cryptocurrency’s ability to break out again. However, ETH has now surpassed key resistance levels, and on-chain analysis reveals several factors that could drive its price even higher.
One such factor is the Ethereum Exchange Netflow, which measures the flow of coins in and out of exchanges. Currently, market participants have taken a significant amount of ETH off exchanges, indicating reduced selling pressure. This suggests that ETH may not face significant selling pressure in the near future, which could be bullish for its price.
Additionally, the number of addresses holding ETH valued at $1 million or more has been increasing. This suggests that long-term holders are accumulating more coins, reflecting bullish behavior. This accumulation by HODLers indicates that Ethereum’s price may avoid further drawdowns.
Crypto analyst Michaël van de Poppe shares a similar view, noting that ETH needs to rise above $2,770 to have a chance of surpassing the $3,000 mark. Breaking through this crucial resistance level could potentially lead to a target of $3,200.
On the daily chart, Ethereum’s price has broken out of a symmetrical triangle pattern. Typically, when an asset’s price breaks below such a triangle, further downside is expected. However, in the case of ETH, the breakout suggests that the price could continue to climb. For this to happen, bulls must defend the $2,689 support and buying pressure needs to increase to surpass the resistance at $2,989. If successful, ETH’s price could rally to $3,316.
It is important to note that this bullish thesis would be invalidated if ETH falls below the support line mentioned above, potentially leading to a price drop to $2,471.
Overall, based on on-chain analysis and technical indicators, there are several reasons to believe that Ethereum’s price could smash through the $3,300 level in the near future.