Ethereum (ETH) Primed for a Comeback as Key Metric Registers a Massive Upswing

Ethereum [ETH], like most other cryptos, has been showing less volatility in the last few days. However, a key metric registered a massive uptick in the last 24 hours, hinting at a trend reversal in the coming days.

Cryptocurrency markets have been showing less volatility in the last few days, with Ethereum [ETH] being no exception. However, a key metric has registered a massive uptick in the last 24 hours, which could hint at a trend reversal in the coming days.

After a 2% weekly rise, ETH’s price volatility dropped. At press time, the token was trading at $3.38k, with a market capitalization of over $407 billion.

While this may seem bearish, the ongoing trend could change soon.

According to data from Coinglass, Ethereum’s Long/Short Ratio shot up sharply in the last 24 hours. This indicates that there are more long positions in the market than short positions, which can often lead to a bullish trend reversal.

Source: Coinglass

Ali Martinez, a popular crypto analyst, posted a tweet revealing how investors were optimistic about ETH’s price rising in the coming days.

The tweet stated that 78.30% of traders on BitMEX with open Ethereum Futures trades were betting on the price going up!

In addition to this, EtherNasyonal, another renowned analyst, posted a tweet suggesting that Ethereum could move towards $4.7k soon.

Chances of Ethereum making a comeback?

The chances of Ethereum regaining bullish momentum were high, as the token’s NVT ratio declined after a sharp uptick.

Whenever the metric drops, it signifies that an asset is getting undervalued, which leads to price hikes.

Source: Glassnode

The king of altcoins’ exchange reserve was also dropping, which meant that buying pressure on the token was increasing. Things in the derivatives market also seemed quite optimistic.

This was evident from Ethereum’s rising Funding Rate—a sign that the market is optimistic and traders expect prices to rise.

Source: CryptoQuant

Although these aforementioned metrics indicated a trend reversal, technical indicators remained bearish. The MA Cross showed a bearish advantage in the market, as the 9-day EMA was significantly below the 21-day MA.

The MACD also painted a similar picture of a bearish upper hand in the market.

Source: TradingView

In case of continued bearishness, investors might first expect the token to drop to $33.7 in the near term, as per Coinglass’ liquidation heatmap.

However, if bulls take charge, Ethereum might first target $34.56 before it eyes $4.7k in the coming weeks or months.