- Ethereum price moved beyond the 200-day Simple Moving Average, revealing a bullish thesis.
- ETH’s on-chain metrics suggest massive bullishness, supporting the technical standpoint.
- However, investors should watch two ‘dip-buying’ zones regardless of the overreaching optimism.
Ethereum depicts upside signals after the altcoin crossed above a critical resistance zone. Also, on-chain metrics indicate a bullish picture supporting the technical viewpoint. For now, the second-largest crypto by market cap seems prepared for explosive upsurges.
ETH and Its Middle-of-the-road Outlook
Ethereum price finally moved beyond the 200-day SMA at 43,490 following several rejections since 13 January. That means a significant development, hinting at a minor uptick towards $3,703, the volume profile bottom volume node.
Sidelined trades can wait for the alt to retest the 200-day Simple Moving Average, a move that can trigger a swift surge to $3,703. Meanwhile, the upswing can extend to the high volume node of $4,040, depending on the bullish strength.
The narrative above is a conservative one and presumes BTC remains steady. Nevertheless, a fascinating case would account for steep retracements towards vital accumulation areas.
The nearest zone for dib-buying can emerge at the support confluence around the $3,000 mark. Remember, the 50- and 100-day Simple Moving Averages coincide with the demand zone at $2,820 – $2,966. Thus, a rebound from this territory would be the most likely scenario to launch an upside move to $4,000 before exploring higher value areas.
Ethereum Price and Highly Optimistic Approach
This narrative evaluates the most pessimistic case before ETH kick-starts an explosive surge towards $10,000 levels. The scenario also ensures the highest ROIs. Ethereum has its alternative ‘dip-buying’ territory at the support floor at around $1,730.
Perhaps that’s due to uncollected liquidity beneath the $1,730 area. Such a dip will only emerge if BTC crashes towards the sub-$35,000 level, a move that can open the gates to $30,000.
Such developments will see ETH losing two psychological areas, around $3,000, then $2,000. Though bearish, an upside reaction from this area would trigger over 100% in returns, taking Ether to $4,000.
Ex-BitMEX’s Arthur Hayes believes Ethereum will hit $10,000 before we end the year, revealing colossal returns. The CEO trust ERC-20 tokens will rule the crypto space once the market ‘dust’ settles.
On-chain Metrics Yell Bullish
Ethereum outflows topped 1.32 million (since 14 March). Such outflows figures have happened eight times only n ETH’s 7-year history. That denotes how vital the development is.
The 365-MVRV adds credence to Ethereum’s bullishness. This metric determines the average losses/profits of traders that bought Ether within the past year.
Though the MVRV flipped beyond the zero line, the local highs formed near 38%, then 72%, suggesting near-term investors stay at break-even and will likely indulge in long-time selling. The MVRV reading supports the bullish case examined from a technical view.
Though things seem lucrative for ETH price, breaking beneath the support at $2,820 on a daily scale will invalidate the initial buy territory. Such a case will see ETH crashing towards the $1,730 area.