Ethereum trades at $2,900 at the time of writing. It is seeing its third-largest bullish performance since September and may end the day with massive gains.
It started trading at $2,724 and surged after a brief decline. The 2-hour chart shows prices hovered around $2,800 for an extended period before the bulls resumed the uptrend, pushing prices to retest $2,900. It briefly broke the critical barrier, peaking at $2,920.
Currently up by over 5%, the apex altcoin may close the day trading above $2,800. Nonetheless, several factors triggered the ongoing rally. The US elections take center stage in the sentiment across the crypto market since the previous intraday session is mainly bullish.
ETH registered a massive surge during this period. It opened trading at $2,422 and surged as buying pressure mounted. It broke above the $2,700 barrier, peaking at $2,746. The altcoin ended the session with gains exceeding 12%.
With prices up by over 17% over the last 48 hours, questions arise about where they will go next. Onchain data offers little insight into this direction.
Declining Exchange Reserves
The latest surge sparked optimism among traders and others who do not hold ETH. They are gradually entering a buying frenzy that may result in massive price increases in the coming days. A clear indication of the growing frenzy is the declining exchange reserves. The latest trend is noteworthy as it ends the previous seven days of the pattern of selloffs.
Large bag holders move lesser assets to exchanges due to their optimism. The netflows are significantly lower. The onchain metric shows a 99% drop in ETH movement from large and small players. Nonetheless, the Ethereum blockchain is more active than it was on Wednesday. Transfer volume within the ecosystem surged by over 113%, and active addresses increased by 4%.
The altcoin saw more inflow during the current session than the previous. The Coinbase premium is positive as US traders continue stacking up. Investors from the Asian market are actively buying, as the Korea premium is positive but shows relatively weak buying pressure. However, the fund premium is negative as ETFs register notable outflow.
The derivatives market is teeming with activities at the time of writing. Selling sentiment took over this section following the latest high. Nonetheless, long-position traders are dominant and willing to pay short traders. Funding rates are positive as investors open new positions and the bulls pay off the bears.
Open interest surged by over 12% over the last 24 hours. This metric shows growing attention to the market and may be another catalyst for the ongoing surge. Pseudonymous crypto trader and analyst Byzantine General tweeted pointed to this indicator while talking about the massive surges ETH may see in the coming days.
Ethereum has Room for More Uptrend
Indicators on the one-day chart suggest Ethereum may surge higher. The first metric at play is the relative strength index. It surged to a high of 67 from a low of 39 a few days ago. The altcoin is not overbought amidst the massive buying pressure it’s experiencing. Although there is a small window before crossing 70, the growing optimism may continue over the next 24 hours.
The moving average convergence divergence prints positive signals at the time of writing. It had a bullish divergence during the previous intraday session. The crossing may signify further price uptrend.
ETH may retest $3k within the next 24 hours if trading conditions remain positive. However, the crypto market may experience corrections following its massive gains and the apex coin may decline as well.
The Bollinger Bands agree that there is a chance of a small correction as the second-largest cryptocurrency is trading above the upper band.
