Important takeaways
- Ethereum recently reached a new high of $ 2,220.
- While the number of ETHs held on scholarships has dropped to a low of three years, the possible downturn has disappeared.
- As long as Ether stays above $ 2,050, there is a high probability that it will reach $ 2,600.
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Ethereum is back in the green after shaking out weak hands. Continued buying pressure could push ETH to a new record of all time.
Shakeout before the breakout
After breaking out of a symmetrical triangle on March 31, Ethereum rose nearly 16% to a high of $ 2,160. The upswing resulted in a significant increase in profit-taking, resulting in a 10.70% decline.
Many traders who were too exhausted were surprised because long ETH positions were worth almost $ 230 million liquidated across the board.
The huge losses caused panic among market participants as the sentiment towards Ether drop to the lowest levels since the beginning of the year.
Smart traders have since implemented this counter-sentiment trading strategy. Santiment recorded a significant decrease in the number of Ether tokens held on exchanges during the most recent correction.
The platform for behavior analysis suggested that such market behavior is likely to reduce the negative potential of Ethereum and lead to another upswing.
‘The amount of Ethereum sitting on exchanges is still declining as more and more funds move to hard wallets and DeFi-based options. This is a good sign for ETH holders, as fewer exchange rates imply a reduced probability of big sales, ”Santiment said.
Ethereum’s upward resume
Interestingly, Ethereum started on the right foot on Saturday 10 April and got back on track to reach its upside potential. The smart contract giant has risen 7% since opening daily, reaching a new high of $ 2,21212.
Based on the height of the symmetrical triangle’s y-axis, Ether has more room to go up. This technical formation estimates that ETH may rise another 15% to the Fibonacci retracement level of 141.1% or 161.8%.
These potential bullish targets are $ 2,480 and $ 2,720, respectively.
It is noteworthy that as long as Ethereum stays above the support level of $ 2,050, the chances will still benefit the bulls. Failure to do so could cause another downturn to the 78.6% Fibonacci level at $ 1,860 before resuming the uptrend.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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