Ethereum’s Value Eyes AU$5,355 (US$3,500) as Trading Activity Reaches Monthly High 

This morning, Ethereum’s value exceeded the AU$4,500 mark, bolstered by a significant increase in trading volume across ETH spot markets. With bullish sentiment growing in anticipation of the U.S. Bitcoin ETF trading sessions, could Ethereum be on its way to an eagerly awaited rise towards AU$5,355 (US$3,500)?

Ethereum’s Trading Volume Surpasses AU$38.25 Billion (US$25 Billion) Milestone

Ethereum’s value achieved another milestone this morning, breaking into the AU$4,500 (US$2,950) range and marking a 30% increase for February 2024. The surge has been primarily fuelled by record inflows from Bitcoin ETFs and institutional investors in recent weeks.

An unexpected surge in trading activity was noted, as investors positioned their bullish bets before the resumption of Bitcoin ETF trading in the U.S. daily trading volume metric, which tracks the confirmed transactions’ nominal value involving a specific cryptocurrency within a 24-hour period, showcased a notable increase.

Ethereum’s trading volume spiked to AU$40.9 billion (US$26.7 billion) overnight, its highest point since January 11. Rising trading volume typically indicates robust investor interest and enhanced market liquidity, enabling trades at desirable prices without hampering upward price momentum.

With Bitcoin ETFs acquiring over 17,000 BTC in the week from February 12 to February 16, trading volumes for Ethereum and other significant altcoins are poised to climb even higher if this trend persists.

Over AU$337 Million (US$220M) Worth of Ethereum Moved to Long-Term Storage in Just Three Days

The movement of Ethereum on exchanges since trading closed on February 16 signifies investor confidence in another bullish week ahead. 

From February 16, there was a noteworthy shift, with over 80,222 ETH moved to long-term storage and staking contracts within three days, reducing the exchange reserves to 13,980,288 ETH by February 19.

 

 

A decrease in exchange reserves typically benefits asset prices by reducing market supply. This trend aligns with Ethereum’s price uptrend that commenced in November 2023. Valued at the 5-day Simple Moving Average price of AU$4,180 (US$2,730), investors have relocated roughly AU$337 million (US$220 million) worth of ETH to long-term storage.

Diminishing market supply by such a significant margin could propel the rally further if market momentum continues to be bullish.

Outlook: Will Ethereum’s Price Hit AU$5,355 (US$3,500)?

Considering the trends in trading volume and exchange reserves, there’s a strong bullish sentiment among investors that Ethereum’s price could advance towards AU$5,355 (US$3,500) in the coming week. However, Ethereum currently encounters a critical resistance level at AU$4,590 (US$3,000).

IntoTheBlock’s global in/out of the money data indicates that 4.5 million addresses acquired 1.7 million ETH at an average price of AU$4,668 (US$3,049). After holding at a loss for nearly three years, some may opt to secure profits. Yet, surpassing this resistance zone could pave the way for a breakout towards AU$5,355 (US$3,500).

Conversely, if bears manage to prompt a reversal below AU$3,060 (US$2,000), a significant support network emerges. As 4 million addresses purchased 3.3 million ETH at a minimum price of AU$4,042 (US$2,640), these investors might undertake urgent buying to safeguard their investments, potentially sparking a swift rebound in Ethereum’s price.

 

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