AMBCrypto - 9/16/2023 11:32:12 PM - GMT (+0 )
- Ethereum’s exchange supply declined.
- Its demand in the derivatives market was high, as its funding rate turned green.
After months of less volatility, top cryptos like Ethereum [ETH] might see a change in trend. The possibility seemed likely as buying pressure on ETH was on the rise. If the increase in accumulation starts to show its effects, then the king of altcoins might soon reach the $1,800 mark again.
Read Ethereum’s [ETH] Price Prediction 2023-24
Buying pressure on Ethereum is high
Santiment’s 15 September tweet revealed an optimistic development that hinted at an increase in volatility in the crypto market. Reportedly, Ethereum’s exchange supply declined, as traders appeared content with their holdings.
The above development was accompanied by a rise in Tether’s [USDT] supply of exchanges. This was a positive outcome, as an increase in Tether’s supply could mean that investors might further increase accumulation.
👍 #Bitcoin's & #Ethereum's exchange supply has resumed going lower as traders appear content #hodling. And the even better news is that #Tether is moving back on to exchanges, now at the highest level since March. This indicates more future buy interest. https://t.co/j5aviy3b5F pic.twitter.com/22b90022aB
— Santiment (@santimentfeed) September 15, 2023
A closer look at ETH’s on-chain performance suggested that investors were already stockpiling the token in hopes of a price rise in the near future. According to CryptoQuant, both ETH’s exchange reserve and net deposits on exchanges were dropping.
Moreover, Ethereum’s supply outside of exchanges flipped its supply on exchanges. Supply held by top addresses also increased, suggesting that the whales were buying the token.
Upon checking Ethereum’s metrics, a few other bullish signals were also revealed. For instance, over the last week, Ethereum’s funding rate turned green, meaning that it was in demand in the derivatives market.
Positive sentiment around the token also remained relatively high, and its MVRV ratio improved, suggesting a possible price uptick.
Though the metrics looked bullish, a look at ETH’s daily chart painted a different picture of what the token’s near-term future might look like. Most of the market indicators remained bearish on the king of altcoins and suggested that its price could go down further.
The Chaikin Money Flow (CMF) and Money Flow Index (MFI) registered downticks. Moreover, ETH’s Relative Strength Index (RSI) was resting below the neutral mark of 50.
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As per the Bollinger Bands, Ethereum’s price was in a less volatile zone, which decreased the chances of a price uptick in the near future. However, one indicator still remained in the buyers’ favor. ETH’s MACD pointed out that the bulls were still controlling the market.
According to CoinMarketCap, ETH was up by nearly 0.2% in the last 24 hours. At the time of writing, it was trading at $1,635.63 with a market capitalization of over $196 billion.