Why Ethereum’s time to shine might be here

Journalist

Posted: November 24, 2023

• ETH could reach $2,100 if buying pressure continues.
• Many trades have ended in profit over the past 24 hours.

Unlike other altcoins, Ethereums [ETH] price action didn’t materialize for a while. During that time, as recently as November 18, ETH fluctuated between $1,915 and $2,000. But in a swift move, the coin touched $2,083 on November 22.

However, technical indications showed that ETH could be poised for more upside potential. JA Maartunn, an author at CryptoQuant, looked at ETH’s price action and noted that there has been some Time-Weighted Average Price (TWAP) buying in the derivatives market.

Someone(s) is buying TWAP on Ethereum futures

This linear growth in open interest indicates systematic purchases over a period of time. $700 million has been added so far. pic.twitter.com/GCXK8u5yLL

— Maartunn (@JA_Maartun) November 22, 2023

Little by little, ETH moons

From the above post, Maarunn noted that more than $700 million had entered the Ethereum market via TWAP. The TWAP strategy is used to minimize the impact of a large order on the value of a cryptocurrency.

So to reduce the impact, the order is split into smaller quantities. So it’s likely that some have buy orders played a role in ETH’s revival.

Another indicator that AMBCrypto considered when assessing the potential of ETH is the Open Interest. The Open Interest shows the number of outstanding futures contracts at the end of a trading day.

According to data obtained by AMBCrypto via Coinglass, ETHs Open interest had increased. When this indicator rises at a time when the price is also rising, it means that there is a strong case for a further rise.

Source: Coinglass

More profits on the way for holders?

Should Open Interest withstand a decline, ETH could be on its way to reclaiming $2,100. In the meantime, holders of the altcoin seem pleased with its recent performance.

This was evident from the daily profit transactions in the chain, and compared with those in red.

At the time of writing it is daily transaction volume in the chain Profits on the Ethereum network amounted to 602,000. Those trades with losses amounted to 322,000.

This difference is a sign that most market players have made profits.

Source: Santiment

The Exponential Moving Average (EMA) supported the idea that ETH’s upward momentum was still alive. At the time of writing, the 20 EMA (blue) had crossed the 50 EMA (yellow). This crossover indicates that the trend is bullish.

How many Worth 1,10,100 ETHs today?

So, traders may be looking to long/buy Ethereum for the medium term. The Moving Average Convergence Divergence (MACD) also supported the bullish bias. This was because the MACD had a positive value of 6.74.

Source: TradingView

This value can be used to indicate increasing upside moment. That’s why traders want to go short ETH should take a break or watch the price action until the movement changes.