- Data shows a clear difference between Ethereum’s current price rally and the 2018 bull market.
- ETH fundamentals support an extension of the rally as institutions accumulate ETH.
The second largest cryptocurrency by market cap Ethereum is accelerating into uncharted territory. At the time of writing, the ETH price has climbed above $1,900 and according to several analysts, there is a good chance that the bulls will prevail.
Economist Alex Kruger stated via Twitter that Ethereum “will soon pass the next level,” by which he meant that the cryptocurrency will soon reach $2,000. Kruger relies on Fibonacci expansions, the performance on the derivatives market, and “round numbers” to assert that ETH has established strong support in the $1,500 to $1,600 range and could rise to $2,750. Kruger stated:
#Ethereum will soon pass to the next level. These are the levels to watch beyond all time highs: 1500, 1600, 1920, 2000, 2240, 2500, 2750.
If you look at ETH options’ open interest by strike you will notice most strikes above all time highs are set at key fib levels.
Why Ethereum has rallied and how it is different from 2018
CryptoQuant CEO Ki-Young Ju shared data indicating that selling pressure and transaction outflows for ETH on exchanges are lower than in 2018. As the chart below shows, ETH transaction inflows and outflows are currently significantly lower than in January 2018 and July 2019, when the cryptocurrency peaked and suffered a subsequent crash. With a current reversed trend, the price of ETH seems poised to continue its upward trend.
Additionally, the rise in the DeFi sector’s TVL coincides with increased usage of the Ethereum network. In the last week, Ethereum’s blockchain has processed an average of 1.2 million transactions per day with 550,000 active addresses daily, as shown in the chart below.
IntoTheBlock listed all the bullish arguments for Ethereum in one tweet:
All 7 of our Actionable Signals are showing a Bullish momentum for #Ethereum
+ change in net network growth vs previous week
+ 7-day MA of addresses profitability
Whales and investors are adding to their ETH positions
+ shift in number of $100k txs
+ futures market momentum