Ethereum Is Facing Huge Price Movements According To On-Chain Data

By October 26, 2020Ethereum
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Ethereum is facing huge price movements as it is winding up for another shot of breaking the $420 level. The positive fundamentals for Ethereum are supporting the bulls in the near-term as we can see in the ethereum news today.

The technical break above the $420 resistance level confirms a continuation of last week’s bullish breakout and the on-chain data analysis shows an increase in activity on the ETH blockchain. Ethereum was consolidating for the past three trading days after the buyers failed to break above the key-short term resistance close to the $420 level. The on-chain analysis reveals that buyers are preparing for a second attempt. ETH managed to break above the $400 resistance level last week after PayPal’s announcement to allow its 350 million users to buy and sell cryptocurrencies on the platform.

ETH/USD chart. Source TradingView

Ethereum remains bullish while trading above the 50-day moving average around the $380 support area can be acted as the important price barrier this month. The price is now capped inside a $400 to a $420 trading range which implies that the second-biggest cryptocurrency could be in a period of accumulation before a bullish explosion happens towards the $450 to $475. ETH faces a minor price correction around the $400 and the $390 support zone this week if the bulls fail to break through the $420 resistance zones in the early-week trades.

eth addresses
24 hours active addresses chart. Source Santiment

One major silver-lining for Ethereum’s bulls is the cryptocurrencies’ on-chain data which seems to be supporting more price appreciations. The traders should consider that ETH has been lagging BTC in terms of gains recently and could start to catch up this week. Ethereum is facing huge price movements like the recent rise in exchange inflow balance shows that large ETH holders are interested in buying at the current market price. The activity coincides with the increasing number of active addresses in the past 24hours.

exchange inflows
Exchange inflow balance chart. Source Santiment

The surge in transaction volume indicates a higher probability of large incoming price movements which can be seen in the charts. this is a positive occurrence and adds more credence to the idea of further bullish momentum if the price breaks above the $420 resistance zone in the following week. However, failing to break the zone could lead to more price consolidation in Ethereum before the election day in the United States.

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