ETH bulls are due for a short-term rally based on this price pattern
- ETH at crossroads after retesting key support range.
- Bulls struggle to secure dominance as the market remains fearful.
ETH might be ripe for a mid-October bounce now that it has been in a bearish pattern since the start of the month. This is not just an assumption but a convergence of multiple observations suggesting that the odds may favor the bulls.
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The Ethereum network’s native cryptocurrency recently came close to its five-month low ($1631). This affinity for downside has been encountering sell pressure near the aforementioned bottom range, followed by noteworthy consolidation and short-lived rallies. At least two were curtailed after previously crossing the $1745 price level, thus short-term resistance.
— Ali (@ali_charts) October 11, 2023
X-based analyst Ali highlighted the aforementioned range which suggested that ETH might be about to pivot in favor of the bulls. The price recently retested its previous short-term support and consolidation was evident. This could be an opportunity for short-term traders to capitalize. However, Ali suggested that a deeper price drop could invalidate the support and lead to even lower prices.
There was a real possibility for more downside especially if sell pressure is triggered by external factors. For example, the recent geopolitical tensions in the Middle East could destabilize things further. Thus, leading to an environment that does not favor investment.
So far ETH price performance seems to be holding up within the support range. This suggested that there might be a resurgence of demand or a slowdown in sell pressure. However, let’s take a look at the data to really have a rough idea of what is happening.
Can ETH bulls secure enough momentum for a rally?
Exchange flow data revealed that Exchange Outflows remained lower than Inflows. The two metrics revealed a surge in activity in the last five days, which seems to have plateaued in the last 24 hours. Exchange Outflows notably dipped more intensely, indicating low bullish confidence in the market.
While the exchange flow data may offer a bit of a dull picture regarding the current state of demand, it may not entirely dictate the next move. Whales have a much bigger impact on price movements and thus tend to be more on the smart money side of things.
How many are 1,10,100 ETHs worth today
On-chain data revealed a divided front as far as whales are concerned. Addresses holding between 1,000 and 100,000 ETH have been trimming their balances for the last four weeks. Meanwhile, addresses holding over 100,000 coins have seen a net gain during the same period.
The supply distribution revealed that the top addresses currently hold the majority of the circulating supply. In short, a substantial number of whales are buying the dip.