Altcoin Ethereum (ETH) is showing promising signs of a potential rally towards the $3,000 mark. On-chain data and ETH price charts point to bullish pressure with exchange balances hitting an all-time low and an increase in stake deposits.
Falling stock market balances for altcoin Ethereum
Data from Glassnode reveals that ETH held on exchanges has dropped to a new low of 12.6% in the past 30 days. This reduction in available supply for sale is generally considered a bullish signal. Some pullbacks are due to concerns over centralized exchanges due to recent regulatory pressures. On the other hand, pullbacks have an important dimension. It reflects a previous pattern in November 2022, when altcoin ETH saw a significant increase in exchange balances following a similar decline.
On the other hand, the amount of ETH locked in staking contracts has increased since the Shapella upgrade in April. Currently, more than 23 million ETH are invested in staking contracts, representing 19.1% of the total supply. In addition, around 30% of the ETH supply is locked in smart contracts, including decentralized finance and staking contracts. These increased withdrawals from exchanges and deposits in smart contracts contribute to the reduction of liquid supply, which is positive for the price of ETH.
Technical analysis and goals
The price of altcoin Ethereum broke above the 50-day moving average. However, it is facing resistance at the $1,900-2,000 levels. This range has served as both technical and psychological resistance levels, with higher lows observed since November 2022. Accordingly, a break above $2,000 is in line with the targets of the ascending channel formation. It will also pave the way for a rapid rally towards the 2022 breakout levels around $3,000.
In terms of ETH/BTC, support is sought around 0.06255 BTC, the low of 2023. A break below this level will reveal bearish targets at 0.05689 BTC. However, the relative strength index points to oversold values. It also signals a potential pullback. Investors should pay attention to the funding rate for the altcoin ETH perpetual swap contract. Because it has risen to monthly highs. Accordingly, this indicates potential risks for late buyers.
cryptocoin.com A short-term retracement cannot be ruled out. Because on-chain movements and market indicators present an interesting situation. It shows a higher probability of upside momentum for altcoin Ethereum in the near to medium term. Let’s not forget Bitcoin’s performance and ability to hold $30,000. These, in turn, will play an important role in sustaining altcoin ETH’s bullish momentum.
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