Despite numerous indicators revealing analyses conducted on-chain, Ethereum (ETH) price, which reached $2,800 early in the morning, might face another fluctuation. As of the time of writing, ETH price is reflected in the charts at $2,757. If Ethereum meets expectations, the price could reach its highest level since the successful launch of spot ETFs on July 23.
Ethereum Comments
Yesterday, before the opening of the Asian market, ETH was trading at $2,624. Following Fed Chairman Jerome Powell’s statement on inflation reduction and potential interest rate cuts, ETH saw similar rises to the rest of the market. The price increase in ETH brought the total gain over the last seven days to 6.93%.
Messari data shows that Ethereum’s adjusted Network Value to Transactions (NVT) ratio has dropped to -53.05. The NVT ratio reveals whether a network’s market value is growing faster than its transaction volume. A high NVT ratio generally indicates an asset is overvalued, suggesting a potential price drop.
However, looking at Ethereum’s situation based on the data, the significant drop in the ratio may indicate that the network’s value is already low, and ETH itself may be lagging in price expectations. Consequently, the cryptocurrency might be near its bottom, and a notable price increase could be on the horizon.
On the other hand, there was a visible increase in Ethereum withdrawals from exchanges. According to data from Glassnode, the net transfer volume on August 23 showed a net decrease of over 280,000 ETH.
The mentioned volume reveals the difference between assets moving towards exchanges and those withdrawn from them. A positive value indicates more coins are being transferred to exchanges, which could be a sign of selling pressure.
Therefore, the recent withdrawals worth approximately $800 million might indicate a buying pressure specific to ETH in the market. Continued increase in the mentioned value could trigger a scarcity in the market, potentially having a positive impact on ETH price.
Will ETH Price Rise?
Looking at the daily ETH/USD chart, it is believed that Ethereum not falling below the $2,536 support level has a significant impact on the rise. If ETH had fallen below this level, the price could have dropped to $2,345, deepening the process further.
On the other hand, the Fibonacci retracement indicator, which reveals key support and resistance levels based on historical price movements, also reflected important data. If ETH surpasses $2,829, the next potential target could be in the $3,265.60 region.
Market analyst Matthew Hyland shared his thoughts on ETH’s price movement in an X post where he published a video. Hyland explained that for the cryptocurrency to return to its July levels, it needs to close above $2,800.
The analyst said:
If Ethereum can close the week above $2,800, then we could see a significant rise towards the $3,500 to $3,600 range.
However, it was seen that the Ethereum foundation transferred thousands of ETH to exchanges in a manner similar to past instances that caused significant issues. As in the past, this transfer could result in a sale. If another transfer occurs, ETH might be significantly impacted, and the price could drop back to $2,516.
