Till now, in October, Ethereum has seen a surge of more than 20%, revealing the bullish momentum of ‘Uptober.’ Nonetheless, as traders seek to cash in near the peak of $1,860, ETH’s price faces challenges in climbing higher. Yet, the sentiment seems favorable as various on-chain metrics turn bullish, indicating that ETH is poised for another surge, potentially exceeding a 30% rise by the month’s conclusion.
Confidence Skyrockets Among 61% Profitable Holders
Amid the hype surrounding ETF, a wave of FOMO led many to invest in Bitcoin and Ethereum. However, these investors are now eyeing profitable exit points close to market peaks. This sentiment has put a pause on Ethereum’s surge, particularly near the $1,860 high. Yet, the shift towards favorable on-chain metrics suggests a promising scenario, potentially fading bearish expectations for ETH’s value.
IntoTheBlock’s data indicates that the recent rise in ETH price beyond $1,730 has positioned over 61% of holders in a profitable state. Consequently, the market maintains a healthy sentiment devoid of any substantial sell-off activities from these holders. Additionally, Open Interest is rising, suggesting traders’ willingness to ride the increased volatility. This metric has experienced a $400 million surge in just a few hours, with the current standing at $5.7 billion.
Nonetheless, any unfavorable news could trigger a significant long-liquidation as whales recently lost interest following ETH’s inability to break past the $1,860 mark. Indicators point to a $2.5 billion reduction in whale transfers as of yesterday. Furthermore, since the 23rd, the exchange netflow has shifted positively as there’s been a notable surge in deposits onto exchanges compared to withdrawals.
Presently, with a Netflow recorded at 33.2K ETH, it appears exchange reserves are on the rise as holders show a preference for liquidation. This trend could potentially trigger a price pullback under the current unstable conditions.
What’s Next For ETH Price?
Ether’s price is currently attempting to meet buyers’ demand as it heads toward breaking above $1,860. However, increasing bearish pressure is creating multiple rejections for the altcoin. As of writing, ETH price trades at $1,784, declining over 1.2% from yesterday’s rate.
Attempts were made to send the rally below $1,760, but a pronounced long wick on the day’s candlestick indicates substantial buying pressure at lower prices. Now, all eyes are on the $1,860 mark, a critical resistance level. If the bulls successfully surpass this level, there’s a chance for the ETH price to jump beyond $2,000.
However, the bears might not stand idly by. They’re likely plotting to pull the value down below the $1,760 threshold, aiming to trap overconfident bulls. Should this happen, the price could retreat to the 50-day EMA at $1,705. A move like this would imply a longer consolidation period for the price.
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