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Ethereum Headed for $2,000? Two Factors Fueling ETH’s Surge
The cryptocurrency market is abuzz with the recent surge in Ethereum’s (ETH) price. The altcoin has been making waves, and many are left wondering if it can continue its upward trajectory. In this article, we’ll dive into two critical factors that could be driving the asset’s meteoric rise.
Firstly, the Exchange Supply Ratio drop is a significant indicator of reduced sell-side pressure. This development suggests that more Ethereum tokens are being withdrawn from exchanges and moved to cold storage or DeFi platforms. As less ETH becomes available for immediate sale, it’s likely that we’ll see further price growth in the near term.
The data reveals that the number of New Addresses has increased by 32.24% over the past seven days, indicating a growing interest in Ethereum. Furthermore, Active Addresses have climbed by 6.96%, confirming strong participation from existing holders. These figures point to an expanding adoption rate, which is likely to propel ETH’s value even higher.
Moreover, short liquidations have outpaced long liquidations, resulting in increased pressure on market participants who are shorting the asset. This phenomenon has the potential to trigger a sharp rally towards $2,000, as liquidity hunters force traders to cover their shorts. In such an event, it is likely that Ethereum’s price will continue its upward trend.
At this point, Ethereum has formed a head and shoulders pattern on the charts. If it manages to break above resistance at $1,836-$1,850, the asset may be in for a significant breakout towards $2,000, representing an 8.9% potential gain.
In conclusion, we believe that the combination of these factors puts Ethereum in a prime position for continued upward momentum. With reduced sell-side pressure, increasing adoption rates, and the possibility of a short squeeze, it seems increasingly likely that ETH will continue its price surge towards $2,000 or beyond.
The article concludes by stating that there’s a head and shoulders pattern forming on the charts, which if broken through could result in a sharp rally towards $2,000.
Source: https://ambcrypto.com/ethereum-headed-for-2000-2-factors-fueling-eths-surge/
