Is Ethereum poised for a breakout? It holds 2 key factors
Whale movements and increased volume ignite hopes for a potential Ethereum breakout.
Whale activity and a 79% increase in volume suggest potential bullish momentum for Ethereum.
- On-chain metrics remain mixed, but bulls hold a slight edge in the long/short ratio.
One Ethereum ICO participant, who initially acquired 150,000 ETH (now worth $389.7 million), made a notable move by depositing 3,510 ETH ($9.12 million) to Kraken after more than two years of inactivity.
This large-scale transaction indicates growing confidence in Ethereum’s future. With Ethereum trading at $2,656.39, up 3.02% at the time of publication, the market is now focused on whether this whale move will trigger a bullish trend.
Increased Ethereum Volume: A Bullish Signal?
Ethereum’s trading volume has seen a sharp increase, reaching $28.21 billion with a 79.30% rise in the past 24 hours.
This surge typically indicates growing appetite among traders, often leading to higher price volatility.
Therefore, if buyers maintain their dominance, the increased volume could push the market higher. However, if volume decreases without subsequent buying, it may signal hesitation and potentially lead to a price drop.
Source: Coinglass
On-Chain Metrics: Mixed Signals for Ethereum
Looking at the on-chain metrics, AMBCrypto found a mix of signals.
The net growth of the Ethereum network remains neutral at 0.19%, indicating no significant influx of new users.
However, the In the Money metric, a key indicator of the number of investors currently in profit, shows a bullish rate of 11.21%.
This suggests that a substantial portion of Ethereum holders remain in profit, which could reduce selling pressure and support price stability.
On the other hand, metrics like concentration and large transactions also indicate neutral trends, with no significant changes in whale accumulation.
Thus, while the whale deposit at Kraken suggests renewed market activity, it has yet to spark a shift in Ethereum’s on-chain dynamics.
Source: IntoTheBlock
Bulls Maintain an Edge
The long/short ratio has slightly tilted in favor of bulls. As of September 23, 52.28% of traders were in long positions, while 47.72% were shorting the market.
This slight majority indicates that traders are leaning towards further price increases for Ethereum. If this ratio continues to favor the bulls, Ethereum may sustain its upward momentum.
Source: Coinglass
Recent whale activity in Ethereum and a significant increase in trading volume indicate bullish potential. However, mixed on-chain metrics suggest that the market is cautious.
The long/short ratio gives a slight edge to the bulls, but the broader market dynamics will ultimately determine the direction.
