The price of Ethereum experienced a significant surge on March 26, reaching $3,663. This marked a 20% increase from the monthly low recorded on March 19. Market data indicates that investors have adopted a more positive outlook in anticipation of the upcoming Bitcoin halving.
Last week, Ethereum came close to falling below $3,000 following the sell-off after the Dencun Upgrade. However, with the Bitcoin halving approaching, on-chain data reveals a notable shift in the sentiment of ETH investors.
As the countdown to the Bitcoin halving reached the 30-day mark on March 19, Ethereum investors began adopting a more conservative trading strategy. This change in momentum can be attributed to investors taking preemptive measures to mitigate potential impacts of the halving, scheduled for April 20.
The Cryptoquant exchange reserves metric, which tracks the number of coins deposited in crypto exchange wallets and trading platforms, shows a decline of 200,000 ETH since March 19. This suggests that traders are opting to hold their assets instead of selling, given the timeframe and market conditions.
The correlation between this shift and the 30-day Bitcoin halving countdown implies that the halving event could be a driving force behind the change in sentiment among Ethereum investors. Regardless of the catalyst, a decrease in exchange reserves often has a positive effect on the price of the underlying asset.
With the current prices, the transfer of over $740 million worth of ETH into long-term storage options or staking contracts in the past week has contributed to the upward pressure on prices. Consequently, the price of ETH has already increased by 20% since the outflows from exchanges began on March 19.
If more ETH investors continue to adopt a conservative approach, the recovery phase of Ethereum’s price could accelerate further in the coming days.
Drawing insights from the $730 million decline in ETH market supply, it is likely that the price of Ethereum will break out towards $4,000 ahead of the Bitcoin halving. The In/Out of the Money chart from IntoTheBlock supports this optimistic outlook. However, the IOMAP chart indicates that the majority of investors who bought ETH within the 20% price range are currently in profitable positions, suggesting that they may be hesitant to sell. This leaves room for a predicted rebound to $4,000.
In the event of a market downturn, the bulls are expected to defend the psychological support level of $3,500.
In other news, the SEC has decided to postpone its decision on the VanEck Ethereum ETF, while investors are exercising caution as Bitcoin and Ethereum options worth $2.6 billion are set to expire.
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The price of Ethereum experienced a significant surge on March 26, reaching $3,663. This marks a 20% increase from the monthly low recorded on March 19. Market data indicates that investors have adopted a more optimistic outlook as the Bitcoin halving approaches.

Last week, Ethereum came close to falling below $3,000 following the sell-off after the Dencun Upgrade. However, on-chain data shows a notable shift in the sentiment of ETH investors due to the impending Bitcoin halving.

In anticipation of the Bitcoin halving scheduled for April 20, investors have been making strategic moves to safeguard their investments. Since the countdown hit the 30-day mark on March 19, Ethereum investors have adopted a more conservative trading approach.

Cryptoquant’s exchange reserves metric reveals that the number of ETH coins held in crypto exchange wallets and trading platforms has decreased by 200,000 over the past week. This decline suggests that traders are becoming more inclined to hold onto their assets instead of selling them in the short term.

Typically, a decrease in exchange reserves has a positive impact on the price of the underlying asset. In this case, it means that over $740 million worth of ETH coins have been transferred out of immediate market supply and into long-term storage or staking contracts. This has led to a 20% surge in ETH price since the outflows began on March 19.

If the conservative outlook among existing ETH investors continues, it is likely that the Ethereum price recovery phase will accelerate further in the coming days.

Analysts also predict that Ethereum price is poised for a breakout towards $4,000 ahead of the Bitcoin halving. The In/Out of the Money chart from IntoTheBlock supports this positive stance. Additionally, the majority of investors who bought ETH within the 20% range of the current prices are currently in profitable positions, indicating that they may be hesitant to sell.

However, if the market experiences another downturn, the bulls will likely defend the psychological support level of $3,500.

In conclusion, the Ethereum price surge can be attributed to investors’ optimistic outlook ahead of the Bitcoin halving. The shift in investor sentiment, as evidenced by the decline in exchange reserves, suggests that the Ethereum price recovery phase will continue to gain momentum.

The price of Ethereum experienced a significant surge on March 26, reaching $3,663, which is a 20% increase from the monthly low observed on March 19. Market data indicates that investors have adopted a more optimistic outlook as the Bitcoin halving approaches.

Last week, Ethereum came close to falling below $3,000 following the sell-off that occurred after the Dencun Upgrade. However, with the Bitcoin halving drawing nearer, on-chain data reveals a notable shift in the sentiment of ETH investors.

In anticipation of the Bitcoin halving scheduled for April 20, investors have made strategic moves to front-run potential impacts. Since the 30-day countdown to the halving began on March 19, Ethereum investors have adopted a more conservative trading approach.

Cryptoquant’s exchange reserves metric, which tracks the number of coins held in crypto exchange wallets and trading platforms, serves as an indicator of investors’ inclination to sell or seek profit-taking opportunities. As of March 19, investors held a total of 14.2 million ETH across various exchanges and platforms. However, this figure has decreased by 200,000 ETH over the past week.

The decline in exchange reserves suggests that traders are increasingly inclined to hold onto their assets and may be hesitant to sell, depending on market conditions and timeframes. This shift in investor sentiment can be attributed to the 30-day Bitcoin halving countdown.

A decrease in exchange reserves often has a positive impact on the price of the underlying asset. In this case, the decline in reserves means that over $740 million worth of ETH has been transferred out of immediate market supply and into long-term storage options or staking contracts. With steady demand and shrinking supply, this puts upward pressure on prices. As a result, the price of ETH has already surged by 20% since the outflows from exchanges began on March 19.

If more existing ETH investors continue with their conservative approach, the recovery phase of Ethereum’s price could accelerate in the coming days.

Analyzing the $730 million decline in ETH market supply, it appears that Ethereum’s price is poised to break out towards $4,000 ahead of the Bitcoin halving. The In/Out of the Money chart from IntoTheBlock supports this positive outlook. There is a significant resistance cluster at $3,758, with 854,150 addresses holding 981,710 ETH at that price.

Additionally, the IOMAP chart indicates that 76.9% of investors who bought ETH within the 20% range of the current prices are in profitable positions. Unless there are major external pressures, most of these investors may be reluctant to sell, which opens the possibility of a rebound to $4,000.

However, if there is another market downturn, the bulls are likely to defend the psychological support level at $3,500.

In other news, the SEC has delayed its decision on the VanEck Ethereum ETF, while Bitcoin and Ethereum options worth $2.6 billion are set to expire, causing investors to exercise caution.