Ethereum is likely to resume its bull run in a tick as the asset has reached its 5-months low of $2.827k. The star altcoin has experienced approximately $193.32 million of liquidations in 24 hours thereby losing almost $5k in its price valuation. As the asset’s hash rate is at ATH and funding rates are positive breakout looks inevitable in the short term.
Ethereum Prepares For Rebound!
For the king altcoin, the fundamentals and on-chain metrics remain positive although the price has been bearish. The Ethereum merger is eagerly awaited and the number of new users has been on the rise eventually. Especially, the number of active users remains undisturbed above 500k.
An on-chain metric platform Cryptoquant observed an inquisitive move in exchange reserves despite the price weakness on Thursday. Currently, the exchange reserves are at their all-time low of 16.6 million low by 2 million since November’s ATH achievement. This accumulation tends to flip the bearish divergence, hence correction below $2.7k looks impractical.
On the other hand, Open interest (OI) appears to have flushed out fully as it is been depleting considerably since December. As OI is at its multi-month low, it is most likely to flip the bearish divergence. Moreover, exchange outflows have risen significantly and amid price weakness, there were 341.6k worth outflows at a price of $3001.
As a result of constant accumulation total number of addresses holding +0.01 coins reached an ATH of 21,117,668. Further hopium of Ethereum 2.0 is yielding significant deposit contracts. The total value in the ETH 2.0 deposit contract reached an ATH of 9,101,002 ETH.
Collectively, it is highly inconvincible if the ETH price falls below $2.7k. As bulls are reaccumulating at a swift rate and OI is slowly flipping the bearish divergence, the bull cycle in the short term looks inevitable. However, it’s been a while where sellers seem to be getting exhausted pulling down RSI to historical levels. If crowd sentiment turns bullish then a 100% upswing looks imminent.