Ethereum Is on the Move. Here Are Three Signs That a Bullish Breakout Could Be Imminent

Ethereum Is on the Move. Here Are Three Signs That a Bullish Breakout Could Be Imminent

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  • Ethereum has shown signs of investor‍ accumulation over the past three weeks.
  • ETH ⁤could see even more gains as disbelief turns to‍ FOMO.

Ethereum [ETH] Peter ‌Brandt‌ called it “junk coins” with “outrageous gas fees.” ⁢Although the token was heavily criticized, some investors were still ‍optimistic.

It was noted that there was ⁤a ⁤6.5% rally ​at this time on April 8. The⁢ gains were made despite a chart‍ pattern that predicted a drop to‍ $2800. Are most participants doubting‍ the ⁤current rally or is⁢ it ⁢a ⁢temporary‌ correction⁣ before the next downside⁤ move?

US ‍traders are shocked

The ⁣Coinbase ⁣Premium Index is ⁤the difference⁤ between Binance and Coinbase prices in percent. Coinbase is the⁤ best index ‌to measure the​ enthusiasm of US participants since ‍Binance is not ‍available to US residents.

The Coinbase premium fell to zero between April 2‌ and April 7. However, ETH was still recovering from recent losses. ​Coinbase’s⁣ premium quickly increased as it rallied at‍ the end of the month.

How about ETH at⁤ $4,000?

Exchange reserves for Ethereum started to⁣ decline‌ to ‌$3,056 after⁢ the drop on March 19. This ⁣was an indication that users were moving their tokens‌ from centralized exchanges. This implied an accumulation of tokens and a decrease in​ selling pressure.

The downtrend still holds, although the ​reserve currency saw a⁢ slight increase on April 7. The short-term resistance of $3,400⁣ was reclaimed ⁣by some investors, giving them a ‍reason to take profits.

A ⁢sustained downtrend in the reserves‍ metric is excellent news⁣ for bulls in the long term.

Looking at the short-term‍ liquidations, ​it‍ was clear that ⁣there were‍ a lot of short-term liquidations in⁤ the past two days. ⁣CryptoQuant data showed that it⁣ was just‌ over⁣ 17,000 Ethereum. Once ‌these liquidations are triggered, they would open‌ market buy orders, which would drive prices higher.


Is your portfolio in the⁣ black? Check out ​the Ethereum profit ​calculator


If the rally continues, Ethereum price would likely ‌blow away the bears.

Their forced capitulation ⁢is rocket fuel for future gains. This week, we ‌could witness a new ⁤short squeeze at ‌$4,000‍ ETH,‌ and disbelief could quickly turn into FOMO.

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