Key Points
- Ethereum’s [ETH] price has seen an 8% rise in the last week, indicating a potential bull rally.
- Despite bullish market indicators, technical data suggests the rally might be short-lived.
Ethereum’s Price Movement
Ethereum [ETH] has recently crossed the $4,000 benchmark, leading many investors to anticipate a rise to $5,000.
In the past week, Ethereum’s price action has seen an increase of over 8% according to CoinMarketCap.
At the time of writing, ETH is trading just shy of the $4k mark at $3,987.46, boasting a market capitalization of over $4789 billion.
Market Analysis
IntoTheBlock has released an analysis on TradingView, which shows a growing number of short-term Ethereum holders.
Historically, this number rises during bull markets as new users join the network.
The current surge in Ethereum traders is nearing the peak of the last bull cycle, suggesting a potential price rally and a new all-time high for ETH.
When analyzing Glassnode’s data, it was found that Ethereum’s Network Value to Transactions (NVT) ratio was experiencing a downturn.
A decrease in this metric usually indicates that the asset is undervalued, hinting at a possible price increase.
CryptoQuant’s data showed that ETH’s net deposit on exchanges was low compared to the last seven-day average, indicating less selling pressure on the token.
While the US buying sentiment for ETH was dominant, as indicated by the green Coinbase Premium, Korean investors continued to sell ETH, as evidenced by the red Korea Premium.
Despite these bullish indicators, technical data suggests a different outcome.
Ethereum’s Relative Strength Index (RSI) was in the overbought zone and the Chaikin Money Flow (CMF) registered a downturn.
These indicators suggest that Ethereum’s bull rally might be short-lived.
