As the bear market continues, Ethereum – the second-biggest cryptocurrency – continues to struggle. If you look at the data from CoinGecko, the most notable positive change is 4.1% in the bi-weekly timescale.
The red flashing of the longer time scales, however, indicates that
- The upswing was triggered by a sudden increase in demand for prime real estate
- The descending triangle, a confirmation of a rally, is formed in part by accumulation blocks
- To push prices higher, ETH buyers need to break over the $1,306.66 barrier
However, a number of indicators are suddenly showing optimistic signs. With the price of ether at $1,231.31 right now, recent headlines have reported a sharp increase in the number of holders with 32 ETH or more, or around $40,000.
Unfortunately, the number of functioning addresses on the blockchain did not expand in tandem with the number of addresses holding significant amounts of cryptocurrency.
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Possibly Creating A Rally?
Contrary to the rise, CryptoQuant reports that the number of active addresses fell on December 7th. Another bullish indicator is the sharp drop in foreign-exchange reserves that has coincided with the rise in the number of high-value addresses.
ETH created two bullish order blocks before the increase in high-value addresses. The price of ETH increased by 14.33% and 12.94% during the first and second bullish blocks, respectively.
The increase of high-value addresses has not yet been reflected in the price, as the price has decreased throughout this time period. Recent market moves have also contributed to the creation of a bullish descending triangle.
The regression channel, which has a Pearson’s R value of 0.6824, bolsters this bullish finding. This indicates that the upward breaks of the upper half of the regression channel correspond to a significant upward trend.
Quite Surprisingly Bullish
The moving average of the Bollinger band acts as resistance at $1,252.15, thereby prolonging this surge. With the RSI rising and the MFI turning bullish, though, the ETH price should explode.
Consequently, ETH bulls should initially aim $1,306.66. If momentum permits, a further target of $1,347.74 would indicate that this is the relief rally that ETH holders have been anticipating.
The construction of bullish order blocks, the decline in
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ETH total market cap at $156.7 billion on the daily chart | Featured image — The Block, Chart: TradingView.com