Ethereum (ETH) has shown resilience above the $2,620 level, mirroring Bitcoin's stability. However, the market is still watching for potential swings as ETH faces both upward and downward pressures. When it comes to the Ethereum price prediction, experts are closely monitoring these movements to determine if ETH will continue its upward trend or face more volatility. Here’s a breakdown of the current scenario:
ETH Gains Above $2,650: Ethereum managed to break through the $2,650 resistance level, signaling a move into a more positive zone.
Price Dip on Monday: Despite the upward momentum, ETH dropped by about 3% on Monday, erasing the gains from Sunday’s trading session.
On-Chain Confidence Grows: Investor confidence in Ethereum remains strong. US-based spot ETFs have shown mild inflows, indicating continued interest in the asset. Moreover, accumulation addresses have reached an all-time high, suggesting that long-term holders are not in a rush to sell.
Also Read: Ethereum Classic Price Prediction 2024-2030: Will ETC Price Cross $50?
Holder Stats Reveal Positive Signs: Data from IntoTheBlock reveals that:
70% of ETH holders are in profit.
28% are experiencing losses.
2% are at breakeven.
Long-Term Investors Remain Steady: Interestingly, 74% of current ETH holders have held their tokens for over a year, while 23% have held for over a month but less than a year. This indicates that many investors are in for the long haul and not eager to part with their holdings.
Volatility Could Be on the Horizon
While the majority of holders are in profit, this could lead to two potential outcomes:
Increased Buying Pressure: As more holders profit, they may reinvest, driving the price higher.
Selling Pressure and Volatility: On the flip side, profit-taking could result in selling pressure, causing short-term price swings. This, combined with a rise in open interest for ETH, sets the stage for possible volatility.
Analyst Predictions for Ethereum
- Potential for Price Rally: Crypto analyst Carl Runefelt has suggested that if Ethereum breaks the $2,640 resistance level, it could kickstart a significant rally. At the time of writing, ETH trades at $2,663, down 2.4% over the past 24 hours.
While Ethereum’s price is holding steady, the market remains cautious as volatility could increase. Investors are advised to keep an eye on key resistance levels as ETH continues to show signs of both strength and potential swings.