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According to data from CoinMarketCap, Ethereum prices gained by 37.14% in the past week to reach a local peak of $2,600. The majority of this gain has been attributed to the recent Petra network upgrade of the Ethereum blockchain, which is designed to introduce many features, including boosting the ETH burn rate and market scarcity.
Amidst Ethereum’s rally in the past week, the altcoin recorded a significant development that signals a long-term bullish market. Related Reading Ethereum Surge Above $2,200 Says Bear Market Is Over, Analyst Calls $5,791 ‘Easy’ Target 20 hours ago Ethereum Stays Above Realized Price – What Does It Mean?
The realized price in the crypto market refers to the average acquisition price of all circulating tokens. It’s a key indicator of market sentiment as a trading price below the realized price signals a bearish market because investors are holding a loss. The reverse scenario is true for a bullish market.
In the analysis provided by CryptoQuant expert Crazzyblockk, ETH is trading above its realized price at $1900 based on the market activity for accumulating addresses, i.e., long-term holders and frequent depositors on the Binance exchange.
Notably, this development just occurred in the past week despite the market rebound that has been ongoing since mid-April. The price rise above $1900 proclaims a loud bullish signal as the long-term holders are now in profits, indicating a renewed confidence in ETH’s long-term value.
This confidence is strongly reflected in the fact that most recent ETH outflows are moving from Binance, the most active crypto exchange for ETH trading.
When Binance ETH deposit addresses show profitability with the current ETH price above the realized price, it indicates a general increase in traders’ confidence and stronger market activity. Moreover, the price rise above $1900 shows a sustained bullish momentum, indicating the market can absorb profit-taking without breaking the current uptrend. Source: CryptoQuant Related Reading Bitcoin ETFs Hit $40 Billion Inflows, Setting Historic Crypto Record 23 hours ago Binance Keeps Lead In ETH Liquidity
Based on the presented analysis, Crazzyblockk further concludes that Binance boasts the most active ETH trading community in the crypto space. This is indicated by the massive ETH outflows on the exchange, suggesting a high market activity on the exchange during price appreciation.
The analyst further tipped the exchange to maintain this dominance as traders will always use the most liquid exchange to manage their positions, either for accumulation or for profit taking.
At the time of writing, Ethereum trades at $2,525, reflecting a 5.88% gain in the past day. Meanwhile, the asset’s trading volume is down by 18.44% and valued at $33.79 billion. ETH next’s resistance remains at $2,600 following a recent rejection in the past few hours. If the altcoin can successfully move past this barrier, a potential upswing to $2,800 lies ahead.
ETH trading at $2,536 on the daily chart | Source:ETHUSDT chart on Tradingview.com
Featured image from Pexels, chart from Tradingview