What’s stopping Ethereum from reaching $ 3,500? – Bitcoin magazine

September was down for most of the top coins in the market. However, as October approached, participants had new market outlooks. At least at the beginning of the fourth quarter, there was a price explosion, with Bitcoin and Ethereum posting gains of nearly 10% in just 12 hours.

Although the coins are now consolidating at important resistance levels, market expectations for the final quarter of the year are already high.

On October 1, Ethereum broke the USD 3,100 resistance. At press time, ETH is trading at $ 3,271, posting a daily gain of nearly 8% and a weekly gain of 10.77%. In the higher time frames, the RSI for ETH increases with the flow of money.

Source: TradingView

Although Ethereum is facing major resistance at USD 3,300, there are already clear signs of good growth trajectory for the top altcoin. One of them was burned in the third quarter, worth over 1.2 billion ETH.

The above conditions, coupled with a sharp rise in prices and a downward trend in Ethereum reserves on the exchanges, could cause a supply shock. This could cause the price to rise further in the short term.

What do the indicators say?

It is noteworthy that the active addresses that hold ETH in less than a month (mainly retailers) increased slightly from the previous month. Looking at the market split for ETH, the Hodler ratio stayed the same, but traders and cruisers (medium-term owners) were more active in September than in August, which is all the more relevant given ASOL’s downward trend.

At the time of writing, ASOL is at its lowest level since October 20th. This downward trend is a sign that young coins have been issued. This usually affects traders and short-term owners. It also means that older coins are still inactive and the trust remains high.

Source: Glassnode

On the other hand, ETH’s network growth is stagnating despite the price increase. Compared to the May rally, network growth has slowed significantly.

However, after Visa uncovered a global payment channel over a Layer 2 network operated by Ethereum, market expectations were high again. Similar effects were seen at the time of writing in the extremely positive social sentiment towards Ethereum.

Although several indicators paint a bullish picture for the top altcoins, the price has encountered strong resistance in the future. It is important for ETH to change like this for a sustainable recovery. Only then will $ 3500 really hit the cryptosphere.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page