Will Ethereum Sustain the Bullish Momentum as Supply on Exchanges Hit Historic Lows?

As Ethereum (ETH) edges closer to the psychological price of $2000, the second-largest cryptocurrency based on market cap continues to enjoy notable momentum.

With ETH supply on exchanges recently hitting an all-time low, a holding culture continues to play out on the Ethereum network, and this is one of the factors triggering the bullish trend.

Leading market insight provider Santiment took to X, formerly Twitter, to highlight that if significant ETH network growth continued to be experienced, this could propel the cryptocurrency to breach past the $2,000 mark.

Source: Santiment

Santiment acknowledged that the creation of new addresses had played an instrumental role in enabling Ethereum to cross the $1,800 level.

Ethereum was up by 4.2% in the past week to hit $1980 at press time, according to CoinGecko.

Low supply on crypto exchanges signals a holding culture because coins are kept in cold storage or digital wallets for future purposes other than speculation, and this is bullish because of low selling pressure.

Is Ethereum Eyeing Breaking Out of a Right-Angled Expanding Triangle?

As Ethereum continues making waves based on its significant authority in several crypto sectors, such as decentralized finance (DeFi) and non-fungible tokens (NFT), various analysts have delved deeper into the coin’s next price action.

Veteran analyst Peter Brandt recently pointed out that ETH had completed forming a right-angled expanding triangle.

Source: Peter Brandt

This pattern is formed based on the expansion of a lower trendline and an upper one, and it can signal the continuation or reversal of the previous trend.

Therefore, if Ethereum breaks this pattern, Brandt suggested the price could soar to the $1,993 zone.

On the other hand, top analyst Ali took to X to highlight that Ethereum was poised to rise to $1,900 thanks to the formation of an ascending triangle by higher lows, and this pattern has been playing out since June last year.

Source: Ali

With Ethereum being a stone’s throw away from $2,000, time will tell whether the second-largest crypto will breach this zone.

Meanwhile, significant resistance sits at $1,960, given that approximately 33 million ETH was bought at this level, as previously reported by ZyCrypto.

Source link