- ETH was up by more than 5% in the last 24 hours.
- Market indicators and metrics remained bullish on the token.
The crypto market recently turned bullish, allowing most cryptos to register gains, and Ethereum [ETH] was no exception. Though this sudden uptrend gave investors hope of a sustained bull rally, an analyst had something different to say.
Ethereum finally turns bullish
After a week-long decline, Ethereum investors were finally enjoying profits as the token’s daily chart turned green.
According to CoinMarketCap, ETH was up by more than 5% in the last 24 hours. At the time of writing, Ethereum was trading at $2,318.33 with a market capitalization of over $278 billion.
However, the latest analysis from CryptoQuant suggested that the probability of ETH moving within a small price range seemed likely.
CryptoOnChain, an analyst and author at CryptoQuant, mentioned in an analysis that derivative market charts indicate a relatively high number of short transactions, which looked bearish.
Source: CryptoQuant
The analysis also mentioned that it was unlikely for ETH to initiate a bull rally before Bitcoin [BTC] manages to go above a key resistance level of $43,500.
However, the king of cryptos has toppled the resistance level already. At press time, BTC was trading at $46,770.41.
Therefore, AMBCrypto planned to have a closer look at ETH’s metrics to understand whether the king of altcoins can touch $2,500 anytime soon.
Ethereum’s metrics look bullish
AMBCrypto’s analysis of CryptoQuant’s data revealed that buying pressure on the token was high. This was evident from the fact that its net deposit on exchanges was low compared to the last seven-day average.
Another bullish signal was its active addresses, which increased in the recent past.
Source: CryptoQuant
Buying sentiment among US investors was also high as its Coinbase premium was green. Not only that, but things in the derivatives market also looked pretty optimistic.
Ethereum’s funding rate remained green, meaning that derivatives investors were actively buying ETH at its higher price.
Source: CryptoQuant
If ETH manages to sustain its bull rally, as suggested by the aforementioned metrics, the coin might face resistance in quite a few zones.
Analysis of Ethereum’s liquidation levels revealed that in order to maintain a bull rally, ETH must go above the $2,400 mark and then the $2,450 mark in the near future.
Source: Hyblock Capital
Read Ethereum’s [ETH] Price Prediction 2024-25
The possibility of ETH going above these levels was likely, as most market indicators were bullish.
For instance, its Money Flow Index (MFI) registered an uptick. Its Chaikin Money Flow (CMF) also followed a similar trend, increasing the chances of a continued uptrend.
Source: TradingView