Ethereum (ETH), the leading altcoin, is showing signs of an upward trend after retesting the $2,100 level. As of writing, Ethereum is trading at $2,200 with a market capitalization of $264 billion. The current price movement of ETH suggests a potential for further increase, despite the recent volatility in the cryptocurrency market.
Despite the fluctuations in ETH’s price, there is a noticeable decrease in the supply of Ethereum on exchanges. This trend indicates that investors are increasingly inclined to hold onto their ETH for the long term. On-chain data provider Santiment reported a significant withdrawal of ETH from large exchange wallets to smaller wallets or off the exchanges entirely, with a total of 240,000 ETH being moved within 24 hours, reflecting a 2.99% decrease in the coin amount on exchanges.
Crypto analyst Michael van de Poppe noted a general strength gain in altcoins but cautioned that it might not necessarily indicate a definitive move. He mentioned that Ethereum currently appears weak for a show of strength, but the situation could change in the coming weeks. Van de Poppe also suggested the possibility of a cash flow from Bitcoin to Ethereum, which could empower altcoins in the first quarter of 2024.
On Tuesday, Ethereum showed early signs of a rally amidst ongoing market movements, with the $2,100 level being a significant point of focus. This level, historically a crucial support, is currently being tested again. A potential price pullback is expected to find support in this region. Traders are also eyeing the $2,500 level as a potential target, with pressure being applied to drive the price up to this point.
Furthermore, surpassing the $2,500 mark could shift the focus to the next target of $2,700. However, a breakdown below the 50-Day EMA could signal the start of negative trends for Ethereum. Lastly, unexpected price surges could occur with the anticipated approval of ETFs in 2024. Daily Altcoin recently suggested that the price of ETH could soar as high as $10,000, outlining several factors that could contribute to such a rise.