- Ethereum has dropped since its $460 highs.
- The coin of the leading cryptocurrency currently trades for $440, though analysts say that it may catch a bid if it goes lower.
- Analysts are specifically eyeing the $420 region, at which point ETH should post a strong bounce.
- Bolstering the Ethereum bull case, on-chain data shows that there is an accumulation of the coin taking place.
- Other trends show that ETH is being accumulated for the ETH2 upgrade.
- Over $15 million worth of the leading cryptocurrency has been deposited in the ETH2 deposit contract.
Ethereum Primed to Bounce Toward $500, Analysts Say
Analysts think that Ethereum could move toward $500 once it manages to take $420 as support in the coming days. This comes after ETH has dropped strongly since the $460 local highs:
“Pretty clear picture of $ETH Supply and Demand flips. Makes for a decent case that 420 down to low 400s are area of interest for dip buys before further upside.”
Chart of ETH's price action over the past few months with an analysis of the current price action by crypto trader Smokey (TraderSmokey on Twitter). Source: ETHUSD from TradingView.com
Other analysts think that the cryptocurrency can also move higher from $420. A pseudonymous trader said that he thinks an important support-resistance flip will take place at the $418-420 level, which should trigger a move toward new highs.
Chart of ETH's price action over the past few months with an analysis of the current price action by crypto trader "Edward Morra" (Edwardmorra_BTC on Twitter). Source: ETHUSD from TradingView.com
Whales Not Buying… Or Are They?
Bolstering the Ethereum bull case, on-chain data shows that there is an accumulation of the coin taking place.
One analyst noted that on a day earlier this week, 258,000 ETH moved off of Binance:
“258k $ETH moved off Binance in the last 24 hours. Almost 10% of what Binance had in it’s wallets. Let’s make it another 10% Sell side liquidity crisis coming in a few months. Where will you get Eth when it’s all locked in smart contracts and DeFi? Are you forward thinking?”
Data of the ETH held by top crypto-asset exchanges shared by Pentoshi, head of TA at Blockfyre
Other trends show that ETH is being accumulated for the ETH2 upgrade. Over $15 million worth of the leading cryptocurrency has been deposited in the ETH2 deposit contract over the past few days as investors look to earn yields on their coins.
Ethereum investors expect the upgrade to drive up the price of the coin even further as expectations of yields grow in the platform. Staking is expected to provide 5-12% worth of yield (in ETH) paid each year.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Analysts Think Ethereum Will Push Toward $500 After Bounce at $420