Ethereum Fixes Target at $3000 Amid Rising Demand: Will Bulls Push ETH Price?
The post Ethereum Fixes Target at $3000 Amid Rising Demand: Will Bulls Push ETH Price? appeared first on Coinpedia Fintech News
Investor interest in Ethereum is growing as it seeks to break out of its current consolidation phase. On-chain data shows a strong demand for Ethereum, with exchange reserves experiencing a sharp drop. As a result, it is anticipated that the ETH price may soon establish $3000 as a solid support level.
Ethereum’s Netflow Drops Amid Strong ETF Inflow
Ethereum has experienced rising volatility in the last 24 hours, according to the liquidation chart. Data from Coinglass indicates that Ethereum’s total liquidations have soared past $49 million. Of this, $30.8 million came from long positions being closed and $18.2 million came from sellers closing their positions.
This month, Ethereum’s spot ETFs have attracted substantial investments, with 145,000 ETH (over $387 million) flowing in—seven times the inflows of January. This surge indicates rising interest from both individual and institutional investors, suggesting Ethereum is gaining market momentum. If this trend continues, Ethereum could approach key resistance levels soon.
As strong ETF inflows boost Ethereum’s demand, its netflow on exchanges is decreasing. According to IntoTheBlock data, Ethereum’s netflow has dropped to a negative $82.4 million, indicating that investors are pulling their holdings from exchanges, which plunges the likelihood of selling pressure.
Also read: Why Ethereum is Down Today: Will $2,400 Hold in the Next Drop?
Furthermore, Ether reserves on centralized exchanges have reached a nearly nine-year low, adding to investor hope about a potential market bottom that could pave the way for a rally towards the $3,000 level. On February 18, ETH reserves across all exchanges dropped to 18.9 million, the lowest since July 2016 when Ether’s price was around $14.
The decreasing supply of Ether on exchanges indicates that investors are transferring their ETH to cold storage wallets for long-term keeping. This trend of Ether being moved off exchanges is generally seen as a positive sign. This has been associated with less selling pressure and more stable prices.
What’s Next for ETH Price?
Ethereum’s price has been climbing, surpassing crucial resistance points and now aiming for the $3K mark. However, it’s encountering strong resistance from sellers, presenting a challenge for investors. Currently, Ethereum is priced at $2,676, having dropped by 3.1% in the last 24 hours.
The trading pair ETH/USDT is nearing $3,000, a critical hurdle. If it remains above this level, it could favor buyers and potentially drive the price up to January’s peak of $3,500.
Conversely, if the price stays below the EMA20 line on the 1-hour chart, sellers might drive it down to around $2,530 to test the patience of buyers. If it fails to stay above that level, the price could fall further to retest the $2,200 mark.
Meanwhile, the Relative Strength Index (RSI) is currently just below the midpoint at level 44, indicating that there could be a price increase soon due to continued buying interest.
