Ethereum could target $3,300 as buying pressure rises
Ethereum (CRYPTO:ETH) has recently crossed the $2,700 mark for the first time since late September, indicating potential for further gains.
In recent weeks, ETH struggled to break key resistance levels, falling below $2,400 at one point.
However, on-chain data reveals a shift in market sentiment, suggesting that ETH may be poised for a sustained rally.
According to data from CryptoQuant, around 29,378 ETH, worth roughly $80 million, has been removed from exchanges within the last 24 hours.
Such withdrawals often indicate reduced selling pressure, signaling a more favorable market environment for price gains.
Lower inflows to exchanges usually suggest investors are holding onto their assets, rather than preparing to sell.
On the derivatives front, this decrease in ETH on exchanges points to low market volatility, with traders holding their positions.
These conditions create a more stable environment for ETH, possibly allowing for upward momentum without significant disruptions from liquidations.
Additionally, data from Glassnode shows an increase in the number of Ethereum addresses holding at least $1 million in ETH.
This accumulation by large holders suggests growing confidence in the asset’s long-term prospects, reinforcing bullish sentiment.
Crypto analyst Michaël van de Poppe echoed this sentiment, stating that if ETH breaks the $2,770 resistance level, it could pave the way for further gains, with $3,200 as the next significant target.
"Ethereum might finally reverse. Breaking through the crucial resistance at $2,770 would be great. If that happens, the next target is $3,200," van de Poppe remarked.
Technically, ETH has broken out of a symmetrical triangle pattern, typically signaling the start of an upward trend.
However, for the rally to continue, bulls must defend key support at $2,689 while pushing the price above $2,989 to target a rally towards $3,316.
At the time of writing, the Ethereum price was $2,638.12.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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