Ethereum
Can Ethereum (ETH) Holders Successfully Initiate a Recovery?
Ethereum (ETH) price is currently reeling from the continued downtrend that has brought the second-largest cryptocurrency below $3,000.
Investors, however, remain optimistic about the recovery, which could occur if broader market signals change.
Ethereum Investors Show Optimism
The Ethereum price is expected to be impacted by the actions of ETH holders, who are currently in favor of a rally. Investors are choosing not to sell their holdings, as evidenced by the decline in active deposits.
Active deposits highlight ETH deposit addresses that are moving their holdings from their wallet to exchanges. This generally indicates selling sentiment and a spike in the same indices of a growing downtrend.
However, for the moment, Ethereum is not just a witness a decline of the same, but the measure is at its lowest level in eight months. So, ETH holders are not very keen to sell at the moment.
Active Ethereum deposits. Source: Feeling
Second, net unrealized profit/loss fell below 0.5 in early April and is currently above 0.4. NUPL is used to analyze the overall profits or losses that investors would witness if they sold at current prices.
These profits have declined, but investors remain optimistic about a recovery. Historically, NUPL’s entry into this zone has been followed by prolonged corrections and considerable rebounds.
Learn more: How to invest in Ethereum ETFs?
The same is also expected this time, pushing up the price of Ethereum.
ETH Price Prediction: Waiting for a Breakout
At the time of writing, Ethereum price is changing hands at $2,973 after falling below $3,000 over the past few days. Stuck in a falling wedge, ETH awaits a breakout above the upper trendline, coinciding with $3,000.
Securing this price within a support floor is crucial, and given investors are pushing higher, this could be the likely outcome. A breakout would also allow ETH to advance towards $3,280, which is crucial to successfully initiate a recovery.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
On the other hand, a decline to $2,800 and a break below the lower trendline would mean bearish signals are dominant. This could lead to further declinesending ETH to $2,600, invalidating the bullish signals.
Disclaimer
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