Ethereum retested $2,800 a few hours ago, marking its second attempt this week. It continues trading above the $2,700 mark.
The largest altcoin opened trading at $2,676 and surged to a high of $2,793. It retraced shortly after peaking, and trades at $2,728 at the time of writing.
The most recent increase marks the coin’s second attempt at the $2,800 mark for the second time in seven days. The first happened on Wednesday when it opened at $2,602 and surged closer to the highlighted mark.
Ethereum failed to break out of its rangebound movement. Since losing $2,800 on Feb. 6, it was unable to reclaim it.
Data from Santiment shows a significant increase in network activity and more wallet creation. The bulls are maintaining significant buying pressure amid the growing bearish sentiment.
Further information from DeFiLlama suggests that the investors are regaining confidence in its long-term prospects. The total locked value fell from 20.7 million ETH on Jan 30. to 19.3 million ETH on Feb. 3. The TVL has since recovered and exceeds 21.8 million at the time of writing.
Transaction volume has since improved, with the blockchain seeing an average of 1 million transactions since the recovery started. However, the revenues declined, with reports suggesting that another ecosystem saw more revenue than Ethereum.
Reports from several platforms indicate that the largest altcoin is seeing notable bullish pressure onchain. However, the situation is different in the spot and derivatives markets.
Further Selling Pressure
Data from CryptoQuant shows more traders taking profit amid the small increases. Exchange reserves are increasing. Traders are selling more assets than they did during the previous intraday session. There are also moving more assets from cold storage. They moved over 135% more coins than on Thursday.
Transfer volume declined by over 40% and active addresses declined by 4%. Investors from the Asian market may be some of the biggest sellers. The Korea premium shows that they are display more selling pressure at the time of writing. Funds premium is negative as Ethereum exchange-traded funds and other products see lesser inflows.
The derivative market is relatively bearish as the taker buy-sell ratio is below 1. Selling sentiment remains dominant across the market. Nonetheless, open interest increased by 2% and maintained this steady increase over the last seven days.
Will Ethereum Breakout?
Data from DeFiLlama and Santiment indicates notable bullish sentiment among investors. However, reports from CryptoQuant show largely bearish trends.
It is worth noting that a steady increase in network activity fueled previous price rallies. This trend may trigger further price increases. Nonetheless, price action suggests an impending breakout.
Ethereum is in an ascending chart pattern. It registered higher lows over the last three days. If the bulls sustain the buying pressure, this may add more pressure on the $2,800 mark. Its latest price improvement come a few days after it bounced off the lower Bollinger band.
Nonetheless, the moving average convergence divergence prints buy signals. The 12-day EMA is in contact with the 26-day EMA. Its bullish convergence ended a few hours ago, and a divergence is underway.
ETH may breakout from its current trend and retest bollinger’s middle band close to $2,900. The Fibonacci retracement points to the $3k mark its next price target.
