Key Points
- Ethereum’s [ETH] price surpasses $2,500, but the long-term downtrend continues.
- A weekly close above $2,496 is seen as a positive sign for ETH bulls.
Ethereum’s [ETH] price has crossed the $2,500 threshold, despite the ongoing long-term downtrend. The key levels to observe in the longer timeframes are $1,949 and $2,496.
Analyst’s Insights
CryptoQuant analyst Burak Kesmeci highlighted that a weekly close above $2,496 would be a bullish sign for ETH. These levels were determined based on the downtrend of Ethereum’s price from $4,807 to $1,067, which started in November 2021.
The TD Sequential has also indicated a buy signal for ETH. However, not all metrics for Ethereum are as promising.
Historical In/Out of the Money Data
The in/out of the money data for 2024 hit its lowest point on September 16, with only 59.4% of all wallets being in the money. This percentage increased to 64.4% on September 20.
This was the lowest percentage of addresses in the money for 2024. Less than two weeks ago, ETH was trading at $2.3k.
At the beginning of the year, ETH prices were at $2,250, indicating that the progress this year has been minimal, particularly in comparison to Bitcoin [BTC].
The netflow metric revealed that $439 million worth of Ethereum flowed out of exchanges in the past 24 hours. The 7-day and 30-day changes were less dramatic, demonstrating the fluctuating nature of netflows.
Although accumulation is taking place, it is sluggish. Investors are hoping for a rapid increase in demand in Q4 2024.
Momentum and Sentiment of ETH Holders
The 90-day MVRV was at -8.45% on September 21, reflecting a significant loss endured by three-month holders. The sharp downtrend in June caught many investors off guard, and the metric hit -27.98% on August 7.
This suggests that quick price gains for Ethereum may be difficult due to holders who might sell the asset during a rally, aiming to break even.
The Open Interest has seen a steady increase over the past month, indicating more speculative activity. The 7-day RSI was at 46, suggesting that the weekly momentum was bearish but was on the brink of turning bullish.
