Ethereum (ETH) recorded a strong jump of 45% since August 3, rising from $3,354 to a multi-year high of $4,792, nearing its all-time high of $4,867. This performance was supported by the emergence of a classic technical pattern known as the "bull flag", which theoretically indicates the potential for further upside that could take the price of Ether to around $6,100, although the historical success rate of this pattern does not exceed 54%.
The recent rise came after overcoming strong resistance at $3,770, which boosted the upward momentum. Meanwhile, exchanges experienced the largest drop in Ether supply in 9 years, with only 12.36% of the supply remaining on them, amounting to about 18.5 million ETH. This sharp decline in supply, attributed by analysts to intense buying by ETF funds and Ether treasury companies, could lead to what is known as a "supply shock" if strong demand continues.
Currently, over 35.7 million Ether are being held for long-term investment, representing about 30% of the total supply, which reflects significant confidence from holders and a decrease in selling pressure. Despite optimistic forecasts from some analysts supported by increasing institutional demand, it remains important for investors to carefully assess the risks, especially amid the volatility of the cryptocurrency market.
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