Ethereum’s [ETH] Value Predicted to Surge 22% to $3,500 – Here’s How

Key Points

• Ethereum (ETH) is gaining attention as on-chain metrics indicate $180 million worth ETH outflows from exchanges.
• Intraday traders are over-leveraged at the $2,712 and $2,870 levels, possibly indicating accumulation and future price movements.

Following a significant price drop in the cryptocurrency market, the sentiment seems to be shifting. Amidst this, Ethereum (ETH), the world’s second-largest cryptocurrency, appears to be altering its market sentiment as it garners increased attention from crypto experts and investors.

Ethereum Outflows and Market Sentiment

Data from 6th February suggests that investors and long-term holders have been purchasing, potentially capitalizing on the recent price decrease. Spot inflow and outflow data indicates that exchanges have seen $180 million worth of Ethereum outflows in the past 48 hours, suggesting potential accumulation. These outflows could increase buying pressure and trigger a further upward rally.

In contrast to the bullish sentiment among long-term holders, intraday traders seem to be leaning towards the bearish side, likely influenced by the current market sentiment. Ethereum’s exchange liquidation map suggests that traders may be over-leveraged at the $2,712 and $2,870 levels, indicating the possible support and resistance levels for Ethereum.

Impact of Market Sentiment and Price Movements

If the market sentiment remains unchanged and the price drops to the $2,712 level, approximately $365 million worth of long positions could be liquidated. On the other hand, if the sentiment changes and the price surpasses the $2,870 level, about $406 million worth of short positions could be liquidated. These liquidation levels suggest that the bulls are weak, while traders holding short positions are leading the asset at the intraday level.

Crypto expert Ali shared a post on X (formerly Twitter), stating that if Ethereum maintains above the $2,500 level, it could potentially rebound to $4,000 or even $6,000 in the future. However, if Ethereum fails to hold this level and closes a daily candle below $2,500, it could drop to its next support at the $1,700 level.

AMBCrypto’s technical analysis indicates that Ethereum was near the critical support level of $2,800. If Ethereum rallies and closes above the $2,880 level, it could potentially surge by over 22% to reach the $3,500 level. Conversely, if Ethereum’s price drops further and closes a daily candle below the $2,720 level, the asset could potentially fall to $2,200.