Ethereum has surged to $3,819 in the past 24 hours, surpassing Bitcoin with a strong 5% increase, signaling new strength in the altcoin market.
Despite a slight decline last week, ETH is currently 49% higher than a month ago, as institutions and companies continue to buy in.
Today's rally has absorbed over $400 million in selling pressure from the previous day, and ETH is now aiming to break through a key resistance level.
If that level is broken, the price of Ethereum could reach a new all-time high, with long-term Ethereum price predictions looking more optimistic than ever.
Ethereum Price Prediction: $419 Million Selling Pressure Impacting ETH – Has the Bull Market Ended?
The alarm bells rang yesterday when analyst JA Maartunn posted a tweet warning of a 'sell-off warning', based on data showing net buying volume for Ethereum futures was negative.
In practice, the net trading volume is -$418 million, which is the 'second largest daily selling imbalance ever', according to Maartunn.
Theoretically, the net buying metric shows a balance between buying and selling volume, with negative metrics – as above – signaling a prevailing selling condition.
Such dominance indicates a bearish sentiment, but what's interesting here is that Ethereum's net trading volume has been extremely negative for most of the year.
This includes the price surge following Donald Trump's victory in the November elections and throughout the past few weeks.
This might be counterintuitive, so we may want to ignore this metric or rush to conclude that there is something unstable or unpredictable about the current bull market.
Other metrics show that we are currently in a very optimistic phase for Ethereum, with today’s chart indicating new upward momentum after a few days of stagnation.
For example, the RSI (yellow) is soaring back to 70 after dropping below 30 earlier this month.
The same goes for the MACD (orange, blue), while we also see that its price has just broken out of a downtrend channel.
Thus, the price is currently close to a major breakout that could push it back above $4,000 and then to $5,000, despite negative trading volume.