Key Points
- Ethereum is slowly nearing the $2.5k mark, sparking hope for a bullish rally.
- Long-term holders are showing confidence in Ethereum, with the Futures long liquidation dominance surpassing 80.
Ethereum, a popular altcoin, is gradually approaching the $2.5k level. This steady increase in value is instigating a bullish sentiment in the market.
Long-Term Holders Trust in Ethereum
The price of Ethereum has seen minor fluctuations over the past 24 hours, and is currently trading at $2,465.36. A noteworthy development was highlighted by a well-known crypto analyst, Ali, who pointed out that Ethereum’s price has been consistently testing its support and resistance within an upward channel.
Ali’s tweet further emphasized the risk-to-reward ratio on Ethereum, stating it was too good to pass up for a long position. He set his stop below $1,880, with a target of $6,000.
Data from Glassnode reveals that Ethereum’s Futures long liquidation dominance has exceeded 80. When this metric reaches 50, it indicates that short-term holder (STH) and long-term holder (LTH) dominance are equal. Therefore, at the current time, it is evident that LTHs are exhibiting confidence in Ethereum.
Whales Also Show Optimism
The dominance of LTHs in the market is further substantiated by the token’s Futures long liquidations, which, after a sharp decrease, have begun to rise again. Additionally, Ethereum’s long-term holder net unrealized profit/loss (NULP), a metric that only considers unspent transaction outputs (UTXOs) with a lifespan of at least 155 days, is displaying optimism. This suggests that LTHs’ confidence in Ethereum is high.
It was also reported that not only LTHs, but whales too have been displaying optimism. Whale balances have grown significantly over the past two weeks, with 56.68 million Ethereum held by mid-October.
Short-Term Expectations
Despite the positive long-term sentiment, it’s important to consider where Ethereum might be headed in the near term. At the time of writing, Ethereum was testing the support at $2.415k. If this test is successful, Ethereum could be pushed towards $2.6k. If it jumps above that resistance, it wouldn’t be surprising to see Ethereum reach $2.7k in the short term.
