Ethereum Price Prediction: ETH Returns Back Above $4,000

Daily Ethereum ETH Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price has a robust support at $3,800.
  • The MACD shows increasing bullish market momentum. 
  • Since the beginning of March 2021, the Ethereum price bounced up from the 50-day SMA to jump from $1,400 to $4,145 – that’s a near 200% rise in overall valuation. In fact this Monday, ETH reached an all-time high of $4,197.47. 

    Ethereum Price Has Four Straight Bullish Sessions

    Ethereum price has had four straight bullish sessions, wherein ETH jumped from $3,500 to $4,145, gaining almost $650 in its overall valuation.Ether has been overbought for quite some time as is indicated by the relative strength index (RSI). However, whatever correction ETH faces will likely be temporary, since the MACD shows that overall market momentum is positive.

    Image: ETH/USD daily

    ETH/USD daily chart 051221

    On the downside, Ethereum price has an extremely robust support wall at $3800 wherein almost 13,000 addresses had purchased >6.5 million ETH tokens. This wall is strong enough to absorb a lot of selling pressure.

    Image: IntoTheBlocks

    ETH/USD volume chart 051221

    Ethereum Whale Transactions Reach ATH

    Ethereum ETH Whale Transactions

    Santiment tweeted:

    "Spouting whale #Ethereum top stakeholders have been historically active over the past week, with one 4-hour window on May 5 seeing over 6,300 $100k+ $ETH transactions. This explosion in activity beginning on May 3rd had much to do with the inevitable rise to $4,200."

    Ether Balances On Centralized Exchanges Fall To Lowest Since June 2019

    The sum of Ethereum on exchanges has fallen to its lowest level for almost two years, according to Glassnode. The analytics firm estimated that just 13.3 million ETH is currently held on centralized exchanges, the lowest it has been since June 2019. As such, centralized platforms hold approximately $52.4 billion worth of ETH (11.5% of Ethereum’s entire supply).

    Ethereum ETH Exchanges Balance
    #Ethereum $ETH Balance on Exchanges just reached a 23-month low of 13,384,235.936 ETH

    A low ETH balance on exchanges is generally understood to be bullish for the markets as it drives a reduction in supply relative to demand on popular trading platforms. Decreasing exchange balances suggests that long-term investors are moving their assets into secure storage or locking their funds up to earn yields through DeFi protocols or staking.

    Glassnode also recently noted that there has been some reduction in exposure to Bitcoin in favor of Ethereum. The data provider correlated the spending behavior of reasonably old Bitcoin unspent transaction outputs of between six months and three years, finding evidence that long-term investors could have been recently flipping into ETH. It said:

    Whilst this is only an empirical observation (correlation causation), the distinct increase in these older BTC being spent back into circulation after a prolonged period of holding makes a compelling case. 

    The firm added that on-chain activity has increased prominently over the past month for Ethereum amid ETHs recent bullish price action. The total number of smart contract calls, daily transactions, and Uniswap transactions have also seen notable upticks since the beginning of the year.

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price will want to take down the all-time high level ($4,197.47) before it reaches newer heights.