The Ethereum price soared on 26 March to $3663, up by 20% from its monthly low on 19 March: Market data indicates that investors are more positive ahead of Bitcoin’s halving.
Last week, Ethereum almost fell below $3,000 after the Dencun Upgrade. Bitcoin has been a big hit.BTCData from the chain shows that a major change has occurred. ETH investors’ disposition.
On the 30-day Bitcoin halves countdown, investors move 200,000 ETH to long-term storage.
Dencun upgrade, delays ETH’s price has recovered around the Ethereum ETFs and is currently up 20% on its weekly chart.
Data trends on the blockchain suggest that investors are making moves strategically to mitigate the impact of the Bitcoin halving planned for April 20, 2019.
Since the Bitcoin halves countdown reached the 30 day mark in March, Ethereum investors are now trading with a conservative approach.
Cryptoquant’s Exchange Reserves metric measures the amount of crypto coins that are currently in wallets or trading platforms hosted by exchanges. This metric is used to track investors’ tendencies to either sell their crypto assets or take profit in the short-term or other time frames.
Investors held a combined total of 14,2 million ETH on various trading platforms and exchanges as of the 19th of March. Over the past seven days, this figure fell by 200,000 ETH.
A persistent decline in the exchange reserve can indicate that traders may want to hang on and be hesitant to sell. This is dependent upon time frame and/or conditions of the market.
This correlation suggests that this significant network event may be the key factor behind the shift in Ethereum investor’s disposition.
No matter what catalyst occurs, the decline of exchange reserves will often have a positive effect on the price.
Firstly valued at today’s prices, the transfer of over $740,000,000 in ETH into long term cold storage or staking contract options is a significant amount of ETH that has left the immediate market.
Prices will rise if demand is constant and the supply continues to shrink. It is not surprising that the ETH has already risen by 20% since March 19, when exchange outflows first began.
If existing ETH holders continue with a cautious outlook, Ethereum’s price recovery could accelerate even more in days to come.
Ethereum price prediction: The $3,750 barrier is under pressure
The $730-million decline in ETH supply has led to a price breakout of $4,000 before the Bitcoin halving.
The In/Out Of the Money Chart on IntoTheBlock also confirms this. ETH faces a resistance group of 854 150 addresses who purchased 981,710 ETH with the price maximum $3,758.
The IOMAP chart above shows that 76.9% (or all investors) who purchased ETH in the last 20% of its current price are now profitable.
If there are no major macro-pressures on them, they may be reluctant to move, which could lead to the $4,000 predicted rebound.
In the case of a second market decline, bulls are likely to set up in order to protect the psychological support level $3,500.
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Source: crypto.news