It looks like Ethereum price is poised to enter another bullish rally after the negative performance in the second half of April 2023. The on-chain metrics show some validation points for the bullish Ethereum price prediction.
After Ethereum 2.0 moved to the Proof of Stake consensus, billions of dollars worth of ETH coins were reintroduced to the market supply. This also sparked bearish price predictions across the Ethereum network and global cryptocurrency markets. But after about a month, the FUD media cloud seems to be starting to clear up.
Here is how some bullish action from Ethereum investors will affect ETH prices in the coming days.
Ethereum holders take the coins off the exchanges
Since the beginning of May, Ethereum investors have moved their ETH coins off exchanges, according to data from Santiment. Obviously, the graph below depicts how the total supply of ETH on the exchanges decreased by 210,000 coins between May 1st and May 5th.
When investors start moving coins off the exchanges, it can have various bullish connotations. Among other things, this could mean that they hold their tokens in yield-bearing smart contracts or opt for self-custodial wallets.
Either way, it means that there is less supply of ETH available to be traded in the short term on exchanges. This may lend some credence to the positive prediction for the price of Ethereum in the coming days.
Whales bet again
Furthermore, there has been a huge spike in whale backlogs across the Ethereum network since May 1st. This also indicates a bullish Ethereum price prediction.
The blue line in the chart below shows how the whale group of 1 million to 100 million coins started buying at the end of April. Between April 30th and May 5th, they added 950,000 ETH to their wallet balances in just six days.
At the current market price of $2,000, these newly added 950,000 ETH coins are worth $1.9 billion. When cryptocurrency whales invest such a huge amount in a week, it indicates that they are in for some bullish movement.
In short, the declining supply of ETH across cryptocurrency exchanges combined with the wave of accumulation among whale investors could push the price of Ethereum above $2,000 in the coming weeks.
ETH Price Prediction: Bulls Could Pay for $2,400
IntoTheBlock’s In Out of Money Around Price data shows that the next bullish rally for Ethereum is likely to reach $2,400. But ETH must first clear the resistance 1.5 million addresses bought 5.7 million ETH at an average price of $1970.
If this happens, the ETH price prediction of $2,400 is likely to be met.
However, the bears could negate the positive outlook if ETH slips below $1,854. Although, as we saw above, bullish support from 2.7 million addresses that bought 5.7 million Ethereum at a price of at least $1,854 is likely to prevent a decline.
But if this support level fails to hold, Ethereum price could drop to as low as $1,674 before the bulls regroup.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.