Home / Business / This is when and why Ethereum is most likely to turn the face of the bull market.

This is when and why Ethereum is most likely to turn the face of the bull market.

It’s fair to say that Ethereum is not enjoying the last month of Q2 2021. The trend looks weak from a bullish perspective, and ETH ends up testing its lows at $1700-1750. However, we are approaching the end of the period. 7 horrible days And there are signs that the incoming green could be the biggest altcoin positive.

3 weeks and breasts?

ETH/USDT in a trading perspective

As mentioned above, Ethereum completed its 3-week bearish run today. Moments are especially important. Because the last time Ethereum faced a 4-week correction was back in March 2020 during the Black Swan collapse. The odds are in favor of Ether to sign up for the Green Candle Week.

Another important observation is that Ethereum is retreating from the demand zone and the asset may close both weekly and daily candles above the key support at $1880. Ethereum has recorded daily closes below $1880 over 2 sessions. A day ago, though, the asset tested $1720 and $1700 earlier on the chart.

Sell ​​pressure loss of steam?

source: Santiment

Increased pressure is one of the key factors for ETH dumps as short-term traders leave the market. Massive influxes have been recorded. But since May 24, outflows have gradually improved. On June 25, 117K ETH has left centralized and decentralized exchanges. This suggests that selling pressure will eventually drop. At press time, 13.8k ETH inflows have been observed, but inflows are relatively small at the moment.

Will Relative Unrealized Profit be the catalyst for the Ethereum rally?

source: Glassnode

Although it is difficult to conclude that historical price movements are repetitive. But the unrealized profit may depend on how traders react to the decline. in the present moment Ethereum’s unrealized gains bear a strong resemblance to the June-July 2017 price action. The trajectory also declined before prices rallied in the second half of 2017.

The unrealized profit is highly dependent on the holder. and since it maintains a higher range The strength of long-term holders is therefore good. The market has recovered from such cases in the past. Therefore, a strong recovery trend can be expected next week.

Hand in hand with Bitcoin?

Bitcoin has been able to move above $33,000 again, and similarly to Ethereum, it has been testing its demand zone again in the past week. According to the data, the number of active addresses has risen sharply over the past few hours for Bitcoin, which shows. to the strength of continued recovery from an on-chain perspective.

during a down cycle The recovery is mostly, and Ethereum will only benefit from the BTC expansion in the chart. As we enter the second half of 2021

subscribe to our newsletter

Source link