Recent metrics indicate a reduction in selling pressure and an increase in market participation for Ethereum [ETH].
After experiencing a 13.25% pullback, Ethereum has shown strong bullish signals. Its price rebounded from the bullish flag resistance level, surging by 6% to $3257.44 at the time of writing.
This pullback to the lower boundary of the bullish flag formation often precedes a potential breakout.
Currently, Ethereum is building bullish momentum as it approaches the next resistance level.
Historically, this pattern suggests accumulation phases where buyers outnumber sellers, laying the groundwork for a significant bullish rally.
Dormant Wallet Activity
The recent transfer of 92,500 ETH from a dormant wallet is a significant development within the Ethereum network. Lookonchain highlighted this notable on-chain movement on X, stating,
“An #EthereumFoundation-related wallet transferred 92,500 $ETH ($294.9M) to a new wallet 9 hours ago after being dormant for 6.6 years. These $ETH were received from the #EthereumFoundation on Sept 1, 2015.”
Reduced Ethereum Selling Pressure
An in-depth analysis of the metrics revealed some intriguing insights. Exchange net flow data shows that net exchange deposits are lower than the weekly average.
This deposit decrease translates to lower selling pressure, as fewer coins are being moved to exchanges for sale.
Additionally, the total number of active addresses has surged by 39.14% compared to the previous day.
This increase in active addresses indicates growing market participation and interest in Ethereum, further supporting the bullish outlook.
Another positive indicator for Ethereum’s bullish rally is the dominance of long positions in the market at press time.
According to the Funding Rate, long-position investors are willing to pay a premium to short-position investors to maintain their positions. This sentiment suggests that leveraged investors believe in ETH’s price rally.
What’s Ahead for ETH?
Ethereum’s current market sentiment points to a potential bullish continuation. Technical analysis indicates a possible rally after retesting the bullish flag support level.
On-chain metrics suggest reduced selling pressure on Ethereum.
All these metrics converge to signal a potential bullish rally to the next resistance level, likely around $3565.33.
