Ethereum, has been making headlines recently as it went past the $2000 level after underperforming for quite some time. This surge comes on the heels of BlackRock’s subtle hint of an Ethereum exchange-traded fund (ETF). This comes just after Blackrock filed for a spot-Bitcoin ETF.
After analysing market data for Ethereum, it could be poised for new all-time highs. However, @IntoTheBlock has pointed out a few takeaways before you make your investment decision.
What does blockchain analysis say?
After examining the In/Out of the money situation @IntoTheBlock shared insights on Ethereum’s current state. According to their analysis, 75% of Ethereum holders are in profit. Also, there are no significant resistance zones until the price surpasses $2500.
This could be a sign for a potential clean run to a new all-time high (ATH). However, historical trends suggest that profit-booking at these levels has lead to pullbacks.
On the other hand, @ali_charts questioned the preference for looking at addresses over volume. He argued that volume indicates significant supply zones.
IntoTheBlock defended their approach by saying that practical observations do not align with the scenario @ali_charts described. However, they agreed on considering volume in profit/loss analysis.
The conversation highlights the complexities of cryptocurrency analysis. While address-based insights provide valuable information about profit distribution among holders, @ali_charts argues that volume analysis is crucial for identifying significant support and resistance areas.
BlackRock’s interest in the cryptocurrency market can be partially for recent surge in Ethereum’s price. the asset management giant hinted at a potential Ethereum ETF after successfully launching a Bitcoin ETF. It has further boosted confidence in Ethereum.
The debate underscores the ongoing evolution of analytical methodologies within the cryptocurrency space. Ethereum aims for new highs and market observers are will keep their eye on-chain metrics, trading volume, and external factors like BlackRock’s ETF plans.