Opportunity? Ethereum, ‘the most bullish altcoin,’ signals imminent rise

Ethereum (ETH) has once again attracted attention with its recent price developments and the emergence of a bullish model on his cards.

This trend, often seen as a precursor to further price increases, has sparked discussions among investors and analysts about the potential for Ethereum to retrace previous highs.

Over the past week, Ethereum has seen notable volatility, marked by a 7% drop in its price. THE cryptocurrencies the previous month’s performance was characterized by a strong uptrend which significantly pushed its price up.

However, a recent correction has dampened investor optimism in the short term. Despite this performance, analysts believe that Ether still remains one of the altcoins with the greatest upside potential at present. Ethereum’s underlying fundamentals and market indicators suggest a potential upward trajectory.

Analyst Outlook and Historical Trends

Prominent analyst Yoddha pointed out that historically, Ether’s return above yearly highs has often preceded exponential price growth. He suggests that if history repeats itself, ETH could embark on a parabolic uptrend with an upside target set at around $20,000, which would make it “one of the most bullish cryptocurrencies.”

Ether’s bullish outlook is further supported by data from CryptoQuant, which shows increased investor accumulation and significant outflows from centralized exchanges.This accumulation activity may be driven by bullish events on the horizon, such as the anticipated start of spot Ether. exchange traded funds (AND F).

Ethereum exit from centralized exchanges. Source: CryptoQuant

Analyst Ali Martinez note increased whale activity, with large holders taking advantage of recent price drops to accumulate more ether. Santiment on-chain data watch the top 10 exchange wallets saw an 8.6% decline in ETH holdings as traders moved their assets to private wallets.

This strong demand-side pressure, combined with reduced supply on exchanges, is likely to create a supply gap that could push the price of Ether above $4,000 and into a parabolic uptrend.

Additionally, according to data, over 200,000 ETH options have recently expired and the crypto community is eagerly awaiting the direction of Ethereum price.

The majority of expiring ETH options are calls, meaning buyers are betting that the price will increase. At the same time, the put-call ratio is 0.36, which indicates that market participants are currently buying more call options than put options.

Market indicators and analyzes

In addition to outflows from centralized exchanges, fundamental and technical indicators provide insight into current market dynamics and future potential.

A decline in Ethereum’s foreign exchange reserves indicates a reduction in available supply, suggesting strong buying pressure from investors.

The increase in the funding rate in the derivatives market shows that long traders are willing to pay premiums to hold their positions, generally favoring upward price movements.

However, Santiment’s on-chain data shows a high Ethereum network value-to-transaction (NVT) ratio, which compares market capitalization to transaction volume, suggesting that Ethereum may be overvalued relative to its on-chain business.

Ethereum NVT ratio. Source: Santiment/Finbold

This high NVT ratio implies that despite strong market interest and price action, on-chain trading volume does not fully support Ethereum’s current valuation, indicating potential caution from investors.

Currently, Ethereum is trading at $3,562.24, with a 24-hour increase of 0.23%. Demand for Ethereum is increasing, indicating that traders expect the price to continue rising in the near term.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

Fuente