Ethereum (ETH) has seen around 20% crash after registering its record peak near $4,867 on 10 November 2021. Nevertheless, a sharp decline doesn’t mean an absence of new record peaks in the coming month, according to several tracked on-chain, macroeconomic and technical indicators.
One of the indicators projects ETH touching the $5,000 mark in 2022 first quarter, while others seem to back the bullish attitude.
Ethereum Price Forming Falling Wedge
ETH’s latest price retracement forms a possible bullish reversal setup referred to ‘falling wedge.’ These patterns start wider and contract as the asset’s price lowers. That way, the price movements paint a conical shape that moves lows as highs and lows reactions converge. Meanwhile, market players will confirm a bullish outlook after a decisive break past the wedge pattern’s resistance.
Investors expect Ether’s price would rise past the plunging wedge resistance within the coming trading session. That way, the token will see a massive upward push, taking the price to levels near $5,000.
Ether Exchange Deposits Drop
Traders usually more tokens to crypto exchanges when intending to trade/see for stablecoin, other cryptos, or fiat. Generally, most transactions to crypto trading sites show massive selling sentiment in the marketplace. On the other side, plunged transactions present a colossal holding sentiment.
Data by an analytics service firm Glassnode indicate that Ether deposits to cryptocurrency exchanges declined to a 23-month low on 3 January.
Moreover, another Glassnode data that monitors ETH addresses sending Ether to crypto exchanges also declined within the past month, and ETH/USD saw an almost 11% drop at the same timeframe. Meanwhile, Ether’s total balance on all crypto exchanges has dropped since 2020 August, showing that Ether investors are in for long games as the price surged from around $400 to levels past $3,800.
For now, cryptocurrency experts believe Ethereum has the necessary elements to trigger a steady rally towards $5,000 soon. While writing this content, Ether traded near $3,793. Analysts believe the leading alt gathers the momentum to launch new upward rallies.
What are your views on Ethereum’s optimistic target? You can leave your reply in the section below.