Ethereum (ETH) has traded sideways for over a month, with its price remaining under the key $3,500 resistance level.
However, on-chain data has shown that a shift could be underway. This analysis explains the two key factors suggesting a potential breakout might be imminent.
Ethereum Sees Surge in Holding Time
On-chain data has revealed a spike in the holding time of all ETH coins transacted over the past seven days. According to IntoTheBlock, this has increased by 55% during the review period.
The holding time of an asset’s transacted coins represents the average duration tokens are held before being sold or transferred. Long holding periods reflect stronger investor conviction, as investors choose to keep their coins rather than sell. This can help reduce the selling pressure in the ETH market, driving up its value.
Further, ETH’s funding rate has remained positive despite its range-bound price movements in recent weeks. At press time, it is 0.019%, reflecting the steady demand for long positions among ETH’s futures traders.
The funding rate is a fee exchanged between long and short traders on perpetual futures contracts to keep the contract’s price in line with the underlying asset’s spot price.
Despite its sideways movement, ETH’s steady positive funding rate indicates that more traders are betting on its price going up, signaling bullish sentiment.
ETH Price Prediction: Break $3,516 for a Climb to $3,684, or Risk Pullback?
Waning selloffs could propel ETH above the resistance formed at $3,516. If it successfully breaks above this key resistance level, its price could climb toward $3,684.
However, if this bullish trend stalls, the coin could fall back within the narrow range or drop toward support at $3,210.
Disclaimer
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