Known for being the second largest cryptocurrency Ethereum (ETH) retested the $2,100 level. Following this development, it is now preparing for an upward movement. At the time of writing, ETH is trading at $2,200 with a market cap of $264 billion.
Ethereum Exchange Exits
Crypto Despite price volatility in the asset, ETH supply on exchanges appears to have reached a new low. This is a positive indicator that more investors are willing to hold their ETH for the long term.
Koinfinans.com As we reported, Santiment reported that with Ethereum’s market cap at just over $2,170, major exchange wallets are actively transferring coins to smaller wallets or withdrawing them from exchanges entirely. In the last 24 hours, a total of 240,000 ETH was shifted from these major wallets, marking a 2.99% decrease in the amount of coins held.
Michael van de Poppe, a famous crypto analyst, altcoinWhile the ‘s are showing strength, he suggests that this may not be a definitive trend at this point. He notes that Ethereum (ETH) currently lacks momentum, but expects a shift in the coming weeks. Van de Poppe predicts that there will be a flow of money from Bitcoin to Ethereum, leading to a strong performance of altcoins in the first quarter of 2024, potentially coinciding with a period when Bitcoin dominance will peak.
ETH Price Movement
During Tuesday’s trading session, Ethereum made an early attempt at a rally amid ongoing market noise. The $2100 level is emerging as a crucial support that has played an important role in the past. Once a point of resistance in the broad market, this level has seen repeated challenges of an ascending triangle. Short-term pullbacks are expected to find support in this region. Even if it falls below $2100, it is estimated that the 50-Day EMA will provide significant support and close attention will be paid to this region.
On the optimistic side, traders see the $2500 level as a potential target, and significant pressure is expected from market participants aiming to steer Ethereum in that direction. Beyond this, the $2700 level comes into focus. The prevailing trend points to a scenario where traders continually capture value during each decline, reflecting an active search for value by the majority of crypto traders.
However, a break below the 50-Day EMA could have negative consequences for Ethereum. In addition, the market’s sensitivity to changes in interest rates, especially in the United States and other bond markets, is also noteworthy. Any rise in interest rates is likely to put pressure on the market and lead to a broader decline in crypto markets that is not limited to Ethereum.