Ethereum has found itself caught within an intense uptrend over the past day, with its overnight upswing invalidating the firm downtrend that the crypto has been caught within against its Bitcoin trading pair.
It now appears that the cryptocurrency could be well-positioned to rally even higher in the near-term if it is able to break above one key trendline that has previously been suppressing its price action.
This bright technical outlook is being bolstered by immense fundamental strength. One metric illustrating this is the massive amount of ETH that hasn’t been moved on-chain in over a year.
This metric points to Ethereum investors widely adopting a long-term investment strategy.
Ethereum rallies to local highs as analysts watch for a breakout
At the time of writing, Ethereum is trading up over seven percent at its current price of $235.
This happens to be where it set local highs several weeks ago concurrently with Bitcoin’s rise to highs of $10,500.
Yesterday evening ETH incurred a sudden influx of buying pressure that propelled it to these highs. This momentum was rather unexpected, as it had previously been consolidating within the lower-$200 region.
Buyers could be on the cusp of sparking an incredibly sharp movement up to its yearly highs of $290 that were set in February.
This could come about quickly if it surmounts a descending trendline that has been formed throughout the past several months.
Josh Rager – a respected cryptocurrency analyst – spoke about this trendline in a recent tweet, explaining that a break above it could spark a movement to higher highs.
“Ethereum outperforming Bitcoin heavily over the past three days. Price is now sitting under three-month trendline on daily which is also the value-area high acting as natural resistance. Breaking/closing above this level would likely lead to new higher highs.”
This rally could be bolstered by mounting fundamental strength
Ethereum’s technical outlook could be bolstered by its fundamental strength.
The cryptocurrency’s primary investor base appears to be taking a long-term approach to their ETH positions.
This is indicated by the fact that 57 percent of the total Ethereum supply has not been moved on-chain in over one year.
Anthony Sassano – the product marketing manager at Set – spoke about this in a tweet while referencing data from analytics platform Glassnode.
“~57% of the total ETH supply has not been moved on-chain for over 1 year with ~16% not moving in over 3 years.”
This data indicates that the cryptocurrency’s long-term outlook is bright, which may translate into further positive price action in the near-term.