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Ethereum (ETH) Price Increase Stagnates as Holders Accumulate

2 mins
Updated by Ryan Boltman
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In Brief

  • Ethereum’s price hovers around 50%, and the Fibonacci Retracement level is around $3,500.
  • The supply on exchange has observed a consistent decline as the outflows point at accumulation.
  • There is minimal room for growth, as more than 90% of the supply is already in profit.
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Ethereum (ETH) price rise is on the cards, given the investors are exhibiting positive signs through their actions.

The question, however, is how far this potential rise can go before it comes to a halt.

Ethereum Investors Remain Optimistic

Ethereum’s price may have a shot at climbing the charts soon as ETH holders continue to accumulate. The exchange net position change shows that outflows have dominated the market since the beginning of the month. In the past three weeks, over 1.1 million ETH worth over $3 billion have been moved out.

Outflows here do not point to money leaving the market but rather ETH leaving exchange wallets. This is a positive sign as it means one of two things: investors are buying ETH off exchanges or moving their holdings to cold wallets.

Ethereum Supply Exchange Position Change.
Ethereum Supply Exchange Position Change. Source: Glassnode

Since the market is not entirely bearish, it is likely the former case.

However, there is one hiccup in this potential rise, and that is how far it could go. Looking at the overall profit ratio, it appears that any rally that ETH notes will be short-lived. This is because over 90% of the supply is already in profit, and crossing 95% will establish a market top.

A market top refers to the peak price level reached by a financial market or asset before a decline or correction begins. It indicates a potential reversal in bullish momentum and suggests a potential downturn in prices ahead.

Read More: How to Invest in Ethereum ETFs?

Ethereum Supply in Profit
Ethereum Supply in Profit. Source: Santiment

Thus, as long as ETH does not hit that threshold, it could chart gains.

ETH Price Prediction: Securing Support

Ethereum’s price is struggling to flip the 50% Fibonacci Retracement level into a support floor. Marked at $3,582, this level would enable ETH to initiate recovery and reclaim the profits it recently lost.

The bullishness exhibited by the investors could push the price beyond this resistance and towards $3,700. Ideally, this would enable a run up to $3,830, which is equivalent to the 61.8% Fib level.

Read More: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum Price Analysis.
Ethereum Price Analysis. Source: TradingView

However, failure to secure $3,582 as support would make it difficult for Ethereum’s price to note any rise. The likely outcome will be a gradual decline to 38.2% Fib line at $3,336. Losing this support as well would invalidate the bullish thesis completely.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...