- ETH stored on exchanges outweighed the custodial coins.
- A 50% rally could occur if currency inflows decline and volatility remains high.
The number of large addresses with Ethereum [ETH] held in non-stock portfolios hit a new All-Time High (ATH), AMBCrypto noted.
In the same vein, the 150 largest stock market portfolios have declined. On a chain facts van Santiment also showed that stock market portfolios are about to hit their lowest point since June 2018.
At the time of writing, the supply from the top non-exchange addresses was 43.41 million. This increase is a sign that many market participants are purchasing ETH at a rapid pace.
Furthermore, keeping the altcoin in-house and fragmenting the amount held on exchanges meant that the intention to sell was virtually non-existent.
Source: Santiment
Salespeople need to take a break
This was clearly visible in Ethereum’s price action. At the time of writing, ETH has changed hands at $2,261, due to the downside that occurred on January 3. But with the increasing accumulation, the coin could be on its way to retest the resistance at $2,444.
If ETH hits the resistance and breaks, there is a good chance that the price will cross the $2,500 mark. In the long term, many forecasts agree that the altco price will melt faces.
But the expected rally may not happen anytime soon. This was because of the stock exchange inflow and outflow. At the time of writing, ETH inflows amounted to 36,000. On the other hand, the currency outflow was 25,000.
AMBCrypto found that the recent selling pressure Ethereum faced was the reason inflows exceeded outflows. If ETH starts seeing $2,500, selling pressure should ease.
Source: Ethereum
ETH is volatile but promising
Like the exchange flow, Ethereum’s seven-day Realized Volatility showed that buying the coin for the short term could be risky. Realized volatility shows the standard deviation of returns compared to the average return of a market.
When the value is low, the realized volatility assign a phase of low risk in that market. As a measure of log returns over a given window, the statistic of 58.18% indicated that price swings could be extreme for now.
So, traders seeking short-term profits may need to stop opening long or short contracts for the time being. If they do, they may end up biting their fingers in regret.
Source: Glassnode
However, the medium to long term looks promising for the Ethereum clan. This was confirmed by the position of the Exponential Moving Average (EMA), as shown in the daily chart.
At the time of writing, the 50 EMA (blue) had crossed the 200 EMA (yellow). This position is considered bullish for those who plan to HODLing ETH. Should the position remain the same, ETH could rise 50% and cross the $3,000 mark within a few months.
How much is 1,10,100 ETHs worth today?
Another indicator under consideration is the Supertrend. At the time of writing, the Supertrend indicator was below the price of ETH. This confirms the initially mentioned bearish trend.
But as highlighted earlier, the trend is not a sign for traders to open short positions, regardless of the decline in the RSI.
Source: TradingView