- ETH moves above $750 for the first in over two years.
- Whales are accumulating ETH tokens ahead of the further price increase.
Ethereum (ETH) hit a new high of 2020 at $759 during early Asian hours. At the time of writing, the second-largest digital asset is changing hands at $751, having gained over 30% in the past seven days. ETH has been gaining ground since the beginning of December amid positive fundamentals and the growing interest from institutional investors.
ETH whales push the market to new highs
According to the data provided by the behavioral analytical company Santiment, the number of Ethereum addresses holding over 10,000 ETH increased by 39 in just two months, while the number of smaller addresses having from 1-10,000 ETH decreased over the same timeframe.
With $ETH crossing $750 for the first time in 31 months, we've discovered that there are 39 more #Ethereum addresses holding 10,000+ $ETH compared to just 2 months ago. Meanwhile, the amount of addresses holding 1-10,000 $ETH have shrunk over this time. https://t.co/H2bp5UHRaV pic.twitter.com/Tr7wiYsUO7
— Santiment (@santimentfeed) December 31, 2020
The increased number of large accounts usually is a precursor of massive price growth as the sudden spike in buying pressure can translate into millions of dollars.
Meanwhile, the Santiment analysts noted that the decrease of smaller accounts numbers might be related to the DeFi industry developments.
This massive drop from two weeks ago from this group surprised us, too. It could very well have been a #defi-related anomaly, considering just how big the dropoff was.
— Santiment (@santimentfeed) December 31, 2020
ETH bulls target at $800
From the technical point of view, a sustainable move above $750 bodes well for ETH bulls. This resistance area is reinforced by a 0.5 Fibo retracement level for the downside move from January 201 high to December 2018 low. It served as a strong barrier for the price since December 28.
On the intraday charts, the local support is created by 1-hour EMA50 at $733. This level shall provide a short-term backstop for the price; however, if it is broken, the sell-off may be extended towards $700. A sustainable move below this level will bring more sellers to the market and bring $665 into focus (1-hour EMA200).
ETH, 1-hour chart
On the upside, if the move above $750 is sustained, the upside momentum will start gaining traction, taking the price to $800.
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
Lukas Enzersdorfer-Konrad, Bitpanda deputy CEO: “Crypto needs Gary Gensler gone”
Lukas Enzersdorfer-Konrad is the deputy CEO at Bitpanda, a broker based in Europe with more than five million users. At the European Blockchain Convention held in Barcelona, the executive shared with FXStreet his views on the current state of the crypto industry and its regulation.
Bitcoin still consolidates despite positive spot ETFs demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
Why is ONDO’s price outlook bullish?
DefiLlama data shows that Ondo TVL reached a new ATH of $613.75 million. Ondo’s Supply Distribution metric shows whale accumulation. On-chain data shows that ONDO’s daily trading volume is rising, and the supply of exchanges is decreasing.
Maker price eyes a rally on technicals and on-chain metrics
Maker trades above $1,500 on Thursday, suggesting a potential rally as technical indicators show bullish divergence. This positive outlook is reinforced by MKR’s Exchange Flow Balance, which shows a negative spike, indicating growing investor confidence in the platform.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.