On-chain data and technical charts suggest bullish pressure building around Ethereum’s Ether. ETH balances on exchanges reached a new low of 12.6% in the last 30 days, indicating reduced supply and fewer tokens available for selling, which is generally a positive sign for the price. In addition, ETH’s supply locked in staking contracts has surged significantly since April, with over 23 million ETH deposited, representing 19.1% of its total supply. Increased withdrawals from exchanges and deposits in smart contracts are likely to aid ETH’s price as it reduces its liquid supply.
Ether’s price broke above the 50-day moving average and recorded higher lows since November 2022, with $1,900-$2,000 acting as psychological resistance levels. If buyers can push above this resistance, ETH could quickly propel towards the $3,000 mark, according to the targets of the bullish ascending channel pattern. However, the funding rate for the ETH perpetual swap contract surged towards monthly highs, acting as a cautionary flag for late buyers.
Investors should conduct their research before making any investment or trading decision, as every move involves risk. On-chain movements and market indicators give the upside a higher chance over short-to-medium-term bearish trends, while Bitcoin’s price action will also play a crucial role in maintaining Ether’s bullish momentum.