- Ethereum successfully defended a long-term trendline.
- ETH/USD is up 4% in the last 24 hours and it’s close to confirming a daily uptrend.
Ethereum was losing a lot of strength in the past week but managed to stay above a long-term trendline formed on May 11. The current bounce is significant and inches away from the last daily high at $237.21. If the buyers can break and close above this level, Ethereum will be in a confirmed daily uptrend and ready to crack $250.
Several key metrics indicate Ethereum is ready for another bull run
The TA for Ethereum looks great but what about the fundamental factors? According to santiment the number of Ethereum outside exchanges has been increasing significantly throughout April and May. Essentially, this means that people are withdrawing their ETH coins which indicates they are more likely to hold them and not sell them.
Another positive metric for Ethereum is the number of active addresses per day. This number has been increasing since March going from roughly 250,000 active addresses daily to almost 400,000.
Ethereum’s trading volume has been declining significantly, especially since the beginning of June. That’s exactly when Ethereum peaked at $253 on most exchanges, this means that the current pullback is really weak as there is not a lot of trading volume. This suggests that weak longs are simply taking profits while the long-term uptrend is intact. This is further supported by the fact that Ethereum long positions keep increasing. More than $420 million in long positions are currently opened on BitMEX and only $40 million in shorts.