Key Points
- Ethereum’s MACD indicator demonstrates a bullish divergence, with exchange outflows and open interest increasing.
- Bitcoin’s break above $67,000 has led to a spike in the crypto fear and greed index to 73, indicating bullish sentiment.
Current Ethereum Market Trends
Despite a bullish bias in the cryptocurrency market after Bitcoin broke above $67,000, Ethereum has not yet seen significant gains.
At press time, Ethereum traded at $2,604, marking a slight 0.4% dip in the last 24 hours.
Ethereum’s Bullish Divergence
The daily chart for Ethereum shows a bullish divergence. The Moving Average Convergence Divergence (MACD) has turned positive.
Furthermore, the MACD histogram bars have turned green and increased in size, indicating that bullish sentiment is strengthening.
However, the Chaikin Money Flow (CMF) currently has a negative value, suggesting more capital is flowing out of Ethereum than into it.
This could mean that buyers are hesitant, possibly waiting for Ethereum to break a key resistance level at $2,687 before entering the market.
Should the bullish divergence indicated by the MACD materialize, Ethereum could surpass this resistance level and aim for a new target at $2,900.
On-chain metrics suggest that such a rally is plausible.
Ethereum Exchange Outflows Reach Two-Week High
On October 15, Ethereum outflows from exchanges reached a two-week high, as traders withdrew their tokens, signaling a lack of intent to sell.
On that day, Ethereum outflows amounted to 589,611, valued at over $1.5 billion.
As a result, the total netflows of Ethereum reached their highest level since late September, hinting that selling pressure on Ethereum could decrease and potentially lead to a price recovery.
Rising Open Interest
The Open Interest (OI) of Ethereum could also impact the price action. Ethereum’s OI was $12.76 billion at press time, indicating growing market participation and interest from derivative traders.
An increase in Open Interest without significant price changes suggests that speculative activity towards Ethereum is on the rise.
This could lead to high volatility if traders start to close their positions following a strong price movement in either direction.
Active Ethereum Addresses Indicate Bullish Sentiment
The number of active Ethereum addresses reached 349,507 on October 15, the highest in the last month. This increase could indicate a rising demand for Ethereum or increased network activity.
The rise in active addresses also corresponds with increased profitability.
Data from IntoTheBlock reveals that following the recent price gain, 30% of daily active Ethereum addresses are in profit, the highest level in the past month.
Simultaneously, the daily active Ethereum addresses in losses have decreased to 13%.
