Ethereum (ETH) Shows Strong Signs of Recovery, Trading at $1,610, with 2.39% Daily Gain

Ethereum (ETH) is showing strong signs of recovery, currently trading at $1,610, with a daily gain of 2.39% sparking renewed optimism across the crypto community.

Ethereum (ETH) is demonstrating signs of recovery as the second-largest cryptocurrency edges closer to the $1,600 level. ETH price showed a daily gain of 2.39% and traded at $1,610 in the early hours of Thursday.

After a weekly decline of 10.99% and a monthly dip of 14.79%, Ethereum’s latest price action suggests a resilient comeback that could mark the beginning of a significant bullish phase.

Here’s a breakdown of the key factors that could propel Ethereum toward further gains, according to technical analysis.

Major Ethereum Holder Activity

One of the most compelling indicators of Ethereum’s potential upswing is the behavior of large holders, commonly referred to as whales. These major stakeholders are reducing transfers to exchanges, a classic sign of long-term accumulation.

When whales hold instead of sell, it often signals confidence in the asset’s future value, reinforcing bullish sentiment across the board.

Another factor hinting at bullish pressure is the fact that exchange netflows for Ethereum have turned negative. This means more ETH is leaving centralized platforms than entering, which could be attributed to investors moving their assets into cold wallets for long-term holding.

Rising Demand Despite Decreasing Exchange Inflows

Despite a decrease in exchange inflows, there’s been an increase in buying activity and positive order imbalances, indicating strong demand for Ethereum.

These conditions set the stage for a potential price rally, especially when considering the interest in opening long positions, which is evident in the positive Aggregated Funding Rate. This metric reflects trader willingness to pay premiums to maintain long positions, suggesting confidence in upward price movement.

If Ethereum’s current momentum continues, analysts are watching closely for a breakout to $1,758, setting the stage for a continuation toward $1,810.

However, traders should remain vigilant. If bullish momentum weakens, ETH could experience a pullback to $1,465, a key support level that might attract renewed buying interest.

Shifting Investor Sentiment

The broader market sentiment around Ethereum is shifting rapidly. As the second-largest cryptocurrency by market cap regains traction, retail and institutional investors are adjusting their strategies.

With decreasing sell pressure and signals of accumulation, it appears that Ethereum’s resurgence might be more than a short-term rebound. Instead, it could mark the beginning of a longer-term trend, setting the stage for further gains.