ETH couldn’t break out of ATH, now what?

After months of waiting, ETH has finally met investor expectations. The price has hit a new all-time high at $ 4,361 and is joining the cryptocurrency alliance that recently hit a new all-time high.

But will ETH continue to grow in value in the future? Or will it react the same as it did in May?

What do the indicators say?

ETH’s new ATH is likely to coincide with the ATH of other altcoins. In contrast to the majority, however, the ETH rally is not the result of a random hype. The top altcoin rose steadily over the month, breaking long-term resistance of $ 4,200.

The upward trend was also due to the fact that investors were very active that month with nearly 560,000 active addresses. The addresses that have been immovable for almost 5 months are now back and trading is active.

Number of active ETH addresses (MA 7d) | Source: Glassnode

However, not all increased purchase and HODL. The address pool with more than 100 ETH shows a current distribution trend. Some of them do this for the whole month and some just take action.

Distribution of ETH addresses by volume | The source: Glass knot

However, the reduced supply on the exchanges shows that the coins sold are continuously being bought back by retailers.

ETH balance on exchange | Source: Tradingview

Surprisingly, these rich addresses are not long-term owners, just ordinary traders. Because most ETH holders continue to run HODL and investors have been doing the same lately.

Since the beginning of October, the dominance rate of 6-12 month owners has increased by 10% to 33%, while 1-3 month owners are 8.7% and continue to rise.

Wave HODL ETH | The source: Glass knot

Hence, the HODL idea will always be beneficial as it stabilizes the retrograde movement. This has often happened at ETH this year.

Investors will still need to hold more, however, as only 0.103% of the ETH supply is unprofitable. The remaining 99.897% profitable will mark the top of the market as in May.

Profitable ETH offer | The source: Glass knot

Hopefully with a correction it won’t be as bad as it did in May. But at the time of writing, some corrections are in sight, pushing ETH sharply down to $ 4,000 on the chart. While bitcoin is falling too, journalist Colin Wu Comment:

“This decline could be attributed to the falling stock market. The Asia-Pacific stock market fell sharply and US stocks also fell ahead of this market. “

ETH price analysis

• Major support levels: $ 4,000, $ 3,500
• Key Resistance: $ 4,380

Ethereum (ETH) failure to break above all-time highs this morning resulted in a quick change in market sentiment. The bears were sold out at higher levels, pushing the price below the short-term ascending support line. Currently, ETH has found support at $ 4,000, which is where the bulls are rallying.

ETH / USDT 4-hour chart | Source: TradingView

Technical indicators

Trading volume: The volume increased during the crash, suggesting that excessive long orders were liquidated in the process.

RSI: The RSI is falling rapidly. However, it has not yet broken into the oversold zone in the 4 hour period. This shows that the bulls still have a chance to defend the USD 4,000 support and prevent further losses.

MACD: MACD has created a bearish cross and its histogram has turned negative. This shows that the bears have a slight advantage in the short term.

ETH / USDT daily chart | Source: TradingView

Perspectives

Given the current price action, the short term bias is neutral with some bearish signs. It’s too early to get bearish as ETH stays above $ 4,000. This shows that the bulls have not completely gone and interest in ETH below $ 4,000 remains high.

However, if the bulls lose that critical support, ETH could quickly fall to the next major support at $ 3,500 as more long positions are liquidated.

You can see the ETH price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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