Ethereum (ETH) Shows Signs of Accumulation

Ethereum (ETH) is currently exhibiting strong accumulation signals and potential for a significant price surge in the near future.

On-chain data reveals a record-low supply on exchanges, suggesting a bullish breakout may be imminent. Investor sentiment appears to be shifting positively.

According to blockchain analysis platform Santiment, ETH is being moved off exchanges into cold wallets rapidly. Only 6.38% of the total ETH supply is currently on exchanges, the lowest since ETH’s inception. This decrease in supply on exchanges is a positive indicator in conjunction with improved community sentiment.

Despite underperforming compared to other large-cap cryptocurrencies in 2024, renewed interest in February hints at a possible rebound.

Analyst Predicts Ethereum to Reach $4,000

Crypto analyst Ted Pillows has shared a 2-week ETH/USDT chart on the X platform, showcasing an ascending triangle pattern, which is historically bullish.

The chart indicates ETH is nearing the upper resistance level of $3,971, following multiple rebounds off the rising trendline. A successful break above this resistance could target $4,000 and higher.

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The ascending triangle pattern often points to an upcoming breakout, especially when it coincides with increasing trading volume. Given that ETH has persistently respected its rising trendline since 2022, a breakout to new highs remains a strong possibility.

ETH Price Analysis: RSI and MACD Insights

Examining the ETH price using the daily chart reveals that the Relative Strength Index (RSI) stands at 41.68, suggesting that ETH is neither overbought nor oversold. A rise above 50 may signal strengthening bullish momentum.

MACD Indicator Demonstrates Bullish Consolidation

Furthermore, the MACD indicator shows that the MACD line (blue) is above the signal line (orange) after confirming a bullish divergence on the daily chart earlier.

The MACD histogram is still green, but the bar intensity indicates consolidation within the $2,400-$2,800 range.

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