The Ethereum price sustainability above $2000 psychological level has sparked optimism about a potential bottom formation in the crypto market. Reduced selling pressure from retail traders and increasing accumulation by large holders supports a bullish outlook, and potential recovery ahead.
Ethereum Bottom in Sight? How to Position for Next Bull Run
The crypto market took a bullish turn around from the 2nd week of September as the U.S. The Federal Reserve is expected to deliver a 0.5% rate cut at Wednesday’s FOMC meeting. This would be the first rate cut in four years with potential impact reaching beyond the U.S. market. Typically this move boosts economic activities and increases investment in risk assets like cryptocurrency. Thus, the leading digital assets price of Bitcoin and Ethereum poised for a potential price recovery amid the macroeconomic event.
According to the network realized profit/loss data from Santiment, the Ethereum holders recently witnessed a major capitulation of 31,702 ETH on September 10th. Typically, this indicates the removal of the weak hands from the market and reduces the selling pressure on an asset. A similar pattern occurred during the August 5th panic selling, which helped establish stable support for ETH around the $2200 level.
Network realized profit/loss | Santiment
Additionally, the supply held by top addresses has been steadily increasing to reach 43.98%, reflecting strong confidence in Ethereum price potential growth.
Supply Held By Top Addresses | Santiment
ETH Price Eyes Major Reversal Amid Double Bottom Formation
The Ethereum price 4-hour chart shows an immediate reversal from $2150 support on September 7th. This second reversal within 5 weeks accentuates active demand pressure which uplifted the asset 7.5% to current stabilize at $2300. Consequently, the Ethereum market cap boosted to $277.9 Billion.
The recovery momentum also revealed double bottom formation, a chart often spotted at the end-of-correction trend. If the pattern holds true, the ETH price could surge 21% up to challenge $2800, followed by $3100.
A decisive higher low formation in the relative strength indicator signals the buying pressure at the $2200 support region.
ETH/USDT – 1d Chart
On the contrary note, the ETH supply on exchange has surged to 21.3 Million coins, indicating the risk of profit taking from speculative traders. Therefore, if the $2800 stands firm, the Ethereum price prediction could lead to a prolonged consolidation trend and rechallenge the $2000 bottom support.
ETH Supply on Exchange | Santiment
Conclude: Despite the increasing ETH supply on exchange, the active accumulation from whale/institutions amid a major reversal pattern indicate a bullish outlook for Ethereum price.
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