Ethereum's price has significantly increased in recent days, reaching $3,050, the highest level since February. Let's examine the key factors driving this surge.
Formation of Bullish Chart Pattern
The daily chart indicates that Ethereum has established a bullish flag pattern, suggesting a potential rise. Additionally, a golden cross was recorded, where the 50-day and 200-day moving averages crossed, acting as a bullish technical signal. The Average Directional Index (ADX) has also risen, indicating a possible move toward $4,000.
Declining ETH Supply on Exchanges
It's noteworthy that Ethereum's supply on exchanges has steadily decreased, currently at 7.29 million tokens compared to a peak of 10.73 million. This trend suggests that investors are shifting their funds into self-custody, which is considered a bullish indicator.
Whale Accumulation of Ethereum
Moreover, large investors or whales have been actively accumulating Ethereum. Wallets holding between 10,000 and 100,000 ETH have grown their assets to 27 million tokens, while wallets with 10 million to 100 million ETH hold 64 million tokens now. This whale accumulation is viewed as a bullish signal.
In conclusion, the recent price dynamics of Ethereum can be attributed to several factors including technical signals, declining exchange supplies, and active accumulation by large investors.
