Ethereum (ETH) Remains Unchanged in Semantics
The price of Ethereum surpassed the $2,900 mark on February 19th, and with increasing trading activity in the ETH spot markets, it could potentially rise even higher. As investors make bullish bets ahead of the trading hours for Bitcoin ETFs, many are wondering if Ethereum’s price will reach the highly anticipated $3,500 milestone.
The trading volume for Ethereum has exceeded $25 billion, marking a significant milestone in its growth. In February 2024, Ethereum’s gains have reached an impressive 30%.
The recent surge in trading activity can be attributed to the inflows from Bitcoin ETFs and institutional entities, which have been driving the market rally. On February 19th, there was a noticeable increase in trading activity in the morning, as strategic investors looked to place bullish bets before the resumption of Bitcoin ETF trading sessions in the US.
Santiment’s daily trading volume data shows that Ethereum’s trading volume experienced a drop-off at the end of Bitcoin ETF trading on February 16th. However, since then, it has been steadily rising. As of February 19th, at around 10:30 GMT, ETH’s trading volume has surged to $26.7 billion, the highest it has been since January 11th.
Rising trading volume is typically seen as a bullish sign for a cryptocurrency. It indicates strong investor interest and allows for favorable trade execution without disrupting the upward price momentum. With Bitcoin ETFs acquiring over 17,000 BTC during the last trading week, it is likely that the trading volume for Ethereum and other major altcoins will continue to rise.
Another important metric to consider is the flow of Ethereum on exchanges. Since the close of trading on February 16th, investors have been moving their ETH into long-term savings. CryptoQuant’s Exchange Reserves data reveals that the total number of coins deposited in exchange-hosted wallets and recognized trading platforms has decreased. This reduction in market supply can have a positive impact on asset prices. In the last three days, investors have moved over 80,222 ETH coins into long-term storage and staking contracts, leaving only 13,980,288 ETH in their trading wallets as of February 19th.
Based on the trends in trading volume and exchange reserves, there is a strong bullish sentiment among investors that Ethereum’s price could reach $3,500 in the coming week. However, there is a significant resistance at the $3,000 psychological level that needs to be overcome. If the bull can break through this resistance zone, a breakout towards $3,500 could be in sight.
On the downside, if the bears regain control and force a reversal below $2,000, it could lead to a market downturn. However, the significant number of addresses that acquired ETH at a minimum price of $2,640 may make frantic purchases to cover their positions and potentially trigger an instant rebound in Ethereum’s price.
