The Ethereum price seems poised for a potential breakout after weeks of sluggish performance. However, the bullish momentum was short-lived following a major incident where nearly $1.5 billion worth of ETH was drained from the ByBit exchange.
Ethereum reached a peak of $2,840 on February 21, only to fall to approximately $2,600 due to the ByBit hack. Yet, recent on-chain data suggests that ETH may still rise to $4,000 by the end of this cycle.
Could ETH Price Still Record A 60% Rally This Cycle?
In a recent post on the CryptoQuant platform, an analyst known as Crypto Sunmoon highlighted a notable bullish divergence that could influence the price of Ethereum in the near term. This observation is based on the movement of ETH’s “taker buy/sell ratio” across multiple exchanges.
This ratio measures the buying and selling volumes for Ethereum. A ratio above one indicates that buyers surpass sellers, typically seen as a bullish signal, while a ratio below one indicates bearish sentiment.
Crypto Sunmoon observed that the 100-day exponential moving average (EMA) of the taker buy/sell ratio has been rising recently, while Ethereum’s price has declined since mid-December. This divergence is seen positively by the analyst, suggesting the end of a bearish trend and the start of an upward movement. Previously, a similar divergence led to a significant price increase from under $2,500 to above $4,000, marking over a 60% rally.
Investors might consider a rise back to $3,000 as a key achievement for Ethereum, and historical trends alongside the current bullish divergence suggest the price may still approach the $4,000 threshold by cycle’s end.
Ethereum Price At A Glance
As of this writing, Ethereum is priced around $2,650, reflecting nearly a 4% decline within the last 24 hours.
Featured image from iStock, chart from TradingView
Comments (0)