Although Bitcoin remains the market leader, Ethereum often comes to mind first when it comes to altcoins. Last year, after falling below $1000, ETH has experienced a sharp recovery and now seems to be emerging from the shadow of Solana.
The Latest on Ethereum
A new report published by CryptoQuant analyst Crypto Sunmoon indicates that there has been a decrease in the Ethereum (ETH) exchange reserves on Coinbase over the last five days.
This decrease in reserves could mean that investors are withdrawing their ETH from the exchange or moving it to another position, possibly due to the recent price consolidation and the associated increase in profit-taking activities.
Moreover, although it may not attract much attention, some users might be transferring their ETH from Coinbase for various reasons such as staking, DeFi participation, or simply to store in their own wallets.
Regardless of the reason, the analyst suggests that the decrease in reserves could be a positive sign for the coin’s price. According to the analyst’s comments, Ethereum’s price generally encounters short-term gains following a reduction in Coinbase’s ETH exchange reserves.
Sunmoon also highlighted when the current decrease in Coinbase’s ETH reserves last occurred, noting that this is the first time since the altcoin’s price level of $1600 in September.
Ethereum Commentary and Price
According to data from 21milyon.com, market participants have been hesitant to make large trades due to the uncertainty in Ethereum’s next price direction, but a 20% increase was observed over the past month.
At the time of writing, the leading altcoin was trading at $2391. Daily chart movements indicate that bulls may be re-entering the market, suggesting that downward activities could have been suppressed.
According to the values of ETH’s Directional Movement Index (DMI), the positive directional index (blue) positioned itself above the negative directional index (orange) on December 26th.
This crossover typically indicates the possibility of a new upward trend in the asset being analyzed. It is interpreted as the upward momentum being superior to the downward momentum, regardless of when it occurs. Since December 26th, ETH’s price has risen by 5% in a manner that supports this situation.
Additionally, Ethereum’s Moving Average Convergence Divergence (MACD) indicated a new bullish run. The MACD line intersected with the uptrend line based on transactions that took place on December 27th.
