Ethereum Set for Major Gains as Selling Pressure Drops

Ethereum has recently shown signs of strength, with its price rising and maintaining momentum. In just the past 24 hours, about $80 million worth of ETH has been withdrawn from exchanges, which suggests a decrease in selling pressure. This trend indicates that fewer traders are looking to sell their ETH, possibly leading to further price gains. Additionally, the number of Ethereum addresses holding at least $1 million worth of the cryptocurrency has increased, which could signal growing confidence among long-term holders.

ETH has managed to break out of a symmetrical triangle pattern, a technical formation that often points to a significant price movement. In this case, Ethereum has moved upward, suggesting a potential price increase of around 23%. This technical development, along with other indicators, paints a promising picture for Ethereum’s future performance. Not long ago, ETH dipped below a critical level, causing speculation that it might struggle to recover. However, the cryptocurrency has since exceeded important resistance levels, demonstrating renewed upward momentum.

One of the primary reasons behind this optimistic outlook is the reduced selling pressure. On-chain data reveals that a significant amount of ETH has been taken off exchanges, which typically indicates that traders are less inclined to sell. This is a bullish signal, as it suggests that Ethereum's price could continue to rise in the near future. The derivatives market also shows a decline in volatility, meaning traders with open positions are unlikely to face liquidation, further supporting the possibility of a price increase.

Another positive sign is the increase in the number of addresses holding ETH worth over $1 million. This suggests that larger investors, known as HODLers, are accumulating more Ethereum, reinforcing bullish sentiment. Typically, when long-term holders accumulate, it indicates confidence in the asset’s future performance. On the contrary, when they sell, it can signal bearish sentiment. For now, the growing number of high-value addresses adds weight to the idea that Ethereum’s price could continue climbing.

Analysts also share a positive outlook. One well-known crypto analyst noted that Ethereum needs to surpass a key resistance level to gain further momentum. Should Ethereum manage to do so, it could set the stage for even higher price targets. However, if the price fails to maintain support at critical levels, the upward trend could stall, and the price may decline.

Ethereum’s current price trajectory suggests that it has the potential to climb higher, but certain resistance levels need to be broken for this to happen. Bulls must hold support and increase buying pressure to keep the upward trend intact. If they succeed, Ethereum could see significant gains in the coming days or weeks. However, if the support levels are breached, Ethereum could experience a pullback.

This upward trend in Ethereum comes after a period of price drops, with many traders worried about whether the cryptocurrency could recover. Over the last seven days, ETH has not only regained strength but has also surpassed crucial resistance levels, fueling hopes of continued growth. Many factors contribute to this positive momentum, from on-chain data to technical analysis, suggesting that Ethereum is well-positioned for a sustained price increase.

In conclusion, Ethereum’s recent performance, backed by strong on-chain data and technical signals, indicates that it might continue to rise. The decrease in selling pressure, along with increased accumulation by large holders, points to a bullish outlook. However, Ethereum still faces key resistance levels that must be overcome for the price to push higher. The coming days will be critical as bulls work to defend support levels and drive the price upwards. Should Ethereum break through these barriers, it could see substantial gains, though a failure to do so may result in a temporary pullback.