- Ethereum price had a significant breakout above $1,500 but it’s slowing down.
- Several on-chain metrics have turned against Ethereum in the short-term.
- However, the smart-contracts giant could still soar higher.
Ethereum was underperforming in comparison to many altcoins, especially DeFi projects, for the past several weeks. Finally, the smart-contracts giant managed to crack the $1,500 resistance level but without a lot of continuation.
Ethereum price is bullish but climbing higher will be tough
One of the main factors behind the most recent Ethereum breakout is Grayscale reopening its Ethereum trust to investors on Monday 1, February. The trust fund has added around 25,000 ETH right after opening worth around $37 million.
ETH supply on exchanges
However, in the past 48 hours, the percentage of ETH inside exchanges has seen a notable spike from 20.45% to 20.63% which indicates that some investors are looking to sell and take profits, increasing the selling pressure of Ethereum.
ETH MVRV (30d)
Additionally, the MVRV (30d) has crossed 20% which shows that on average, investors are up one-fifth of their initial investment. The last two tops on January 25 and 19 were accurately predicted by the MVRV crossing above 20% up to 28%. This indicates that Ethereum is at risk of another correction in the short-term.
ETH/USD weekly chart
On the weekly chart, the TD Sequential indicator has just presented a sell signal. The nearest support level is located at $1,251 which is the 78.6% Fibonacci retracement level. Losing this point can push Ethereum price down to the psychological level at $1,000 which is also the 61.8% Fib level.
ETH active addresses
However, there are some positive metrics in favor of ETH as well. For instance, the number of active addresses over the past 24 hours has seen a massive spike to 535,000, the highest peak since January 10, which indicates the breakout has some strength behind it.
The Eth2 deposit contract now holds 2.93 million ETH worth more than $4.55 billion and the number of Ethereum coins locked inside DeFi protocols has continued to rise to 7.38 million currently, which means that around 10.3 million ETH are locked representing close to $16 billion at current prices. The next bullish price target for Ethereum is $2,000 which coincides with the 127.2% Fibonacci level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.