Ethereum (ETH), one of the leading cryptocurrencies, has been experiencing a period of sideways movement, with its value lingering below the crucial $3,500 threshold for over a month. However, recent on-chain data hints at a potential shift in momentum. Let’s delve into the key factors that might signal an imminent breakout.
Holding Time on the Rise
Recent analytics from IntoTheBlock have highlighted a significant increase in the holding time of Ethereum coins. Over the past week, the average holding duration of transacted ETH has surged by 55%. This metric reflects the average time investors hold onto their tokens before selling or transferring them.
A longer holding period is indicative of strong investor confidence. When investors choose to hold rather than sell, it reduces the selling pressure on the market, which can contribute to a rise in value. Additionally, Ethereum’s funding rate remains positive, currently standing at 0.019%. This steady demand for long positions among futures traders signifies bullish sentiment despite the price stagnation.
The funding rate, a fee exchanged between long and short traders on perpetual futures contracts, ensures the contract’s price aligns with the underlying asset’s spot price. A consistently positive funding rate suggests that more traders are betting on Ethereum’s price increase.
Predicting ETH’s Next Move: $3,516 or Bust?
The market dynamics suggest that waning selloffs might propel Ethereum past the $3,516 resistance level. Should ETH manage to break through this key barrier, its value could surge towards $3,684. However, if the bullish momentum falters, the cryptocurrency might retreat within its current narrow range or even dip towards the $3,210 support level.
Disclaimer: This price analysis article is provided for informational purposes only and does not constitute financial, investment, or legal advice. BeInCrypto does not endorse any cryptocurrency or investment opportunity. Market conditions are subject to rapid change. Always conduct your own due diligence and consult with a qualified professional before making any investment decisions.
