Ethereum’s price has been a bit of a rollercoaster lately. After a brief surge, a large ETH withdrawal from ByBit exchange sent the price tumbling. But don’t count out Ethereum just yet!
A Bullish Signal?
Some analysts believe Ethereum still has room to run, potentially reaching $4,000. This optimism stems from a bullish divergence spotted in on-chain data.
Specifically, they’re looking at the “taker buy/sell ratio.” This metric compares the volume of ETH bought versus sold at market price. A ratio above 1 means more buying, a bullish sign. A ratio below 1 indicates more selling, bearish.
The key finding? The 100-day moving average of this ratio has been rising, even as the Ethereum price has been falling. This divergence suggests the bearish trend might be over. Historically, similar divergences have preceded significant price increases – in one past instance, Ethereum jumped from under $2,500 to over $4,000!
What This Means for Ethereum
While a return to $3,000 would be a win, this bullish divergence hints at a potential rally to $4,000. That’s a significant increase of over 60%!
Current Ethereum Price
At the time of writing, Ethereum is trading around $2,650, down about 4% in the last 24 hours. But the long-term outlook, according to this analysis, remains positive.
