Positive signals are accumulating for ETH and encourage investors to hold onto their tokens in the prospect of a sharp rise in the price of Ether.
It’s a milestone week that is shaping up for Ethereum. On the surface, however, market indicators are not grandiose. Over seven days, the price of ETH shows a slight increase.
At 3543 dollars, down over 24 hours, Ether is nevertheless expected to grow very strongly. This explains the desire of investors to keep their tokens. How is this trend reflected?
+ 60% in April / May after the withdrawal of $ 1bn
By a massive withdrawal of ETH on centralized exchanges. These operations reached a record amount this week, as can be seen from IntoTheBlock. For example, in April, $ 1 billion worth of Ethereum was withdrawn from CEXs.
Traders thus give up selling in the short term. And the result in April of this investor attitude was a 60% Ether price surge within 30 days. This scenario may well be repeating itself.
IntoTheBlock reports that $ 1.2 billion in tokens were withdrawn from exchanges during the day of September 16 alone. This is a record in terms of outflows on the CEXs.
This signal favors speculation on the rise and suggests an imminent and substantial surge in the price of the 2nd capitalization cryptocurrency. Already in September, ETH was around $ 4,000 and its previous ATH.
However, the price subsequently plunged, swept away by a massive Bitcoin sell-off. Graphically, this results in a pattern well known to trading specialists. The course of Eth draws in effect a “cup and handle” or “cup and handle”.
The price of Ether at $ 6,500 within 30 days?
As explained by our colleagues at CoinTelegraph, after a decline in the price, it returns for the second time to an earlier peak. But above all, it exceeds this resistance, drawing “a movement equal to the depth of the cup”.
This pattern thus makes it possible to estimate the future rise in the price of Ether. The depth is around 2,400 dollars. By testing the resistance of $ 4,100 through a bullish movement, ETH could advance to $ 2,400 thereafter.
Clearly, the price of the crypto-asset could climb to just over $ 6,500. It is a possibility, not a certainty. However, a Harvard study estimates the probability at at least 65%, at least when the pattern applies to the foreign exchange and equity markets (68%).
In addition, other factors support the hypothesis of an increase in the price of ETH. The first of these is the drop in the number of tokens in circulation, or the supply. Since the hard fork London, tokens are burned.
For 42 days, more than a billion dollars worth of Ether have thus been withdrawn from the market. To this is now added the withdrawal of $ 1.2 billion in tokens from the exchanges. The supply is shrinking, exerting upward pressure. So much for the theory anyway.