The price of Ethereum has seen a modest increase over the last 24 hours, which is due to significant network developments and institutional interest. Let's take a look:
1. Network updates: The Fusaka upgrade on Ethereum improves scalability and security, fueling optimism for the long-term outlook.
2. Institutional Flows: The increase in institutional participation contrasts with the recent outflows from ETH ETFs.
3. Technical Signals: Price increase meets potential correction from the overbought indicators.
Positive Factors:
1. Network Upgrade: Activated on December 3, the Fusaka upgrade implements PeerDAS technology, which enhances scalability and security for layer two solutions.
2. Institutional Acceptance: Vanguard's decision to allow crypto ETFs, including Ethereum, on its platform signals a deepening of institutional participation in the crypto market.
3. Accumulation by Whales: An address linked to Bitmine withdrew 30,278 ETH ($91.16 million) from Kraken, suggesting a shift towards long-term holding and reduced selling.
Risks:
1. ETF Outflows: Spot ETH ETFs in the US recorded a net outflow of $10.7 million, mainly due to a withdrawal of $89.5 million from BlackRock's ETF.
2. Overbought RSI: Technical indicators show that Ethereum's RSI is currently in the overbought zone, suggesting a potential price correction after recent gains.
3. MACD Momentum: The MACD histogram has declined, moving from positive to negative, indicating a potential weakening of the bullish price momentum.
Community Sentiment:
🐻 Bearish Sentiment: A significant part of the community discussion reflects bearish sentiment, with many traders expressing intentions to sell on a crash or expecting a price drop.
📈 ETH still holds the front in the crypto world, but with these signals, is it time for HODL or sell-off? What do you think? Share in the comments!
🙂 I opened a short position expecting a price around $2000-$2300 by the end of December. However, considering the noise around the new update, I expect it to reach $3200-$3300 before the bigger drop.
⚠️ This is not financial advice. The information is for analytical and educational purposes.
