Based on historically accurate technical indicators, analysts are "insanely excited" about the altcoin, as ETH is just 18% above the 200-week EMA level.
The trader explained that prices have consistently bounced off this indicator in 2020 and were in a downward range during the 2022 bear market, adding, "The risk reward here is outstanding! The potential upside to 8-10k is about 200% and the worst case scenario is only 20%. The risk/reward ratio is excellent.
In addition to the indicator, the analyst presented two high-frequency timeframes (HTF).
Dr. Profit noted that most of the liquidity remains above $4000. Forming a bullish confluence with the aforementioned pattern, market markers are expected to push Ether towards the liquidity cluster to establish a breakout.
Overall, the upside is around 200% of current prices, while the drawdown is less than 20% of current prices.
Meanwhile, Glassnode data shows a spread in the value of #ETH , indicating increased investor activity, accumulating funds around the $2,632 support level, where 786,000 ETH was bought. However, it is important to note that there is a higher accumulation cluster at the $3,150 level with 1.22 million ETH. Drawing possible conclusions, the data platform states, "This trend suggests that investors are accumulating and averaging ETH at lower prices rather than exiting positions entirely.
Will #Ethereum outperform #bitcoin in the short term?
The recent Bybit ETH hack was expected to shake the ETH market structure, but the altcoin has held up to some extent, as confirmed by CryptoQuant. Chain analyst "crypto sun-moon" noted that while Ethereum's buy/sell ratio is rising, BTC's buy/sell ratio is falling.
The buy/sell ratio shows the number of buy orders relative to sell orders, with a rising ratio indicating strong buying pressure. Historically, this change in momentum has given Ether a more bullish momentum against Bitcoin in the short-term.
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