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The approval of the Spot ETF on January 11 has resulted in Ethereum (ETH) price outperforming Bitcoin (BTC), and on-chain data suggests that this trend could continue to widen in the coming days.
Over the past week, Ethereum price has consistently closed above the $2,500 mark, indicating the dominance of ETH bulls. Despite speculations that investors would take profits at the milestone of $2,500, the bulls have held out for more gains.
Further supporting the bullish stance of ETH holders is the recent shift in ETH exchange reserves. Cryptoquant’s exchange reserves data shows that investors have moved 133,271 ETH coins from exchange wallets into long-term storage in the last 7 days. This shift dispels concerns of widespread profit-taking at the $2,500 milestone.
A decrease in exchange reserves is typically a bullish sign for short-term price action. It indicates that investors are moving their coins from trading wallets into long-term storage, signaling confidence and intent to hold for further gains. With the decline in exchange supply over the past week, it is not surprising that ETH price has consolidated above the $2,500 support.
Historical trends show that rapid declines in ETH exchange reserves have often been followed by price uptrends. If this pattern continues, Ethereum holders can expect a surge towards $2,600 in the coming days.
In addition to the decrease in exchange supply, Ethereum is also attracting more demand. The total number of active ETH sell orders has dropped below market demand, indicating a dominant bullish sentiment. This suggests that ETH could further extend its lead over BTC.
Based on these on-chain data points, Ethereum price is likely to continue its upward trajectory towards $2,700 in the short-term. However, the bulls must overcome the $2,612 resistance level to validate this forecast. If they succeed, the next target for Ethereum price could be the $2,700 area.
On the downside, the bulls can rely on the significant buy wall at $2,400 for initial support. This level has historically attracted a large number of addresses acquiring ETH at an average price of $2,414, which could prompt an instant rebound if holders rush to cover their positions.
Overall, the approval of the Spot ETF has boosted Ethereum’s performance, and on-chain data suggests that this trend could continue. Ethereum holders can anticipate further gains in the days ahead, potentially surpassing Bitcoin in the midterm.
