Ethereum Price Forecast: ETH could retest $2,707 as investors resume accumulation
Ethereum price today: $2,520
- Ethereum on-chain metrics indicate addresses are accumulating again.
- Ethereum added 3.64 million holders between September and October, 40% higher than in July and August.
- Ethereum could retest the $2,707 resistance if it bounces off the $2,490 support level.
Ethereum (ETH) is down over 1% on Friday. A key technical support level suggests a bounce off $2,490 amid signs of investor accumulation across on-chain metrics.
Ethereum investors have resumed accumulation
Ethereum exchange-traded funds (ETFs) posted $13 million in net inflows on Thursday despite a market-wide correction, per Coinglass data. The positive flows extended their streak to three consecutive days of net inflows, indicating institutional investors are gradually allocating capital to ETH.
ETH's Mean Coin Age metric also signals a similar trend among on-chain holders. Mean Coin Age shows the average number of days that all ETH tokens stayed in their current addresses. A consistent upward slope indicates rising accumulation, and a downward slope signals increased transfer of ETH between addresses.
ETH's Mean Coin Age has been in an uptrend since August 23 before a slight downturn on October 25, per Santiment data. However, the uptrend has resumed, indicating that addresses are accumulating the number one altcoin again.
 [17.04.05, 01 Nov, 2024]-638660790165491810.png)
ETH Mean Coin Age
On-chain data platform EmberCN's recent spotting of whale activity aligns with Santiment data.
According to EmberCN, a notable whale accumulated 19,772 ETH worth about $49.62 million in the past three days. Since September 17, the whale has withdrawn 54,272 ETH worth about $137 million from Bybit and Binance.
Meanwhile, Ethereum's total number of holders has also picked up pace in the past two months, increasing by 3.64 million to 130.52 million — 40% higher between September and October than in July and August. This shows growing investors' appetite for ETH.
 [18.09.43, 01 Nov, 2024]-638660790622490072.png)
ETH Total Amount of Holders
Ethereum Price Forecast: ETH could retest $2,707 resistance after bouncing off key support
Ethereum is trading near $2,510 on Friday, down 1.5% on the day. This follows $45 million in liquidations in the past 24 hours, with long and short liquidations accounting for $34.24 million and $10.98 million, respectively.
The top altcoin could bounce off the support near $2,490 and stage a move to retest the resistance near $2,707. A successful move above this resistance will see ETH aim to reclaim the $2,817 level, which served as a key support level for about four months — April to July.
ETH/USDT daily chart
If ETH reclaims the $2,817 level and maintains an extended move above the 50-day and 200-day Simple Moving Averages (SMA), then it could recover the $3,000 psychological level.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are slightly above their mid-levels, indicating that bullish pressure is modestly dominant.
A daily candlestick close below $2,490 will invalidate the thesis.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
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