Following the rise in Bitcoin due to ETF update news, Ethereum (ETH) experienced a significant surge, sparking hopes for a continuous bull rally. However, an analyst from CryptoQuant offered a different perspective, suggesting a more likely scenario of ETH moving within a narrow price range in the coming days.
ETH’s price increased by nearly 4% over the last 24 hours, trading at $2,289, with its market volume rising by 3% to over $275 billion, and a 44% increase in 24-hour trading volume to $12.7 billion, according to CoinMarketCap data.
CryptoQuant’s leading analyst CryptoOnChain indicated that derivative market charts pointed towards more short positions compared to long, hinting at a potential downturn. Meanwhile, Bitcoin’s failure to break above the $43,500 resistance level could hinder ETH’s ability to start a bull rally.
The analysis of CryptoQuant data showed high buying pressure on ETH, with net exchange deposits lower than the seven-day average, and an increasing number of active addresses signaling a potential price rise. Premiums on Coinbase appeared positive, reflecting the strong buying interest among American investors, and Ethereum’s funding rate was also positive, indicating that derivative traders were still eager to buy ETH at higher prices.
If ETH can initiate a bull rally, it may face resistance at several levels, potentially stalling investors. The anticipated ETF approval could further impact ETH’s price, possibly allowing the altcoin to surpass the expected resistance levels of $2,400 and then $2,450.