Ethereum Price Forecast – ETH/USD Tosses in Upward Channel – Brace for Buying!

The ETH/USD closed at 1823.35 after placing a high of 1837.88 and a low of 1743.62. Ethereum prices extended their gains and rose for a second consecutive day on Wednesday amid the rising retail interest for Ethereum as Vitalik Buterin proposed to increase the size of addresses in the blockchain network.

The co-founder of Ethereum published a proposal for security improvement in which he suggested changing the size of its wallet addresses from 20 to 32 bytes. This improvement came to avoid access to the same public address from two different private keys.

Another reason that could be attributed to the rising prices of Ethereum on Wednesday could be the latest announcement made by Meitu – a software development firm that is listed on the Hong Kong Stock Exchange. Meitu is most known for its selfie-editing app that was heavily popular in China. The company’s share price was shrinking massively in recent years as they approached their 13th year in business. To keep up with the trend and survive in this competitive market, Meitu decided to follow other major corporations’ footsteps and started buying cryptocurrency. The company believed that cryptocurrencies and blockchain technology might have many advantages over the existing systems and institutions. The company also believes that the prices will go up, which will eventually give profits.

Last week, Meitu made the newest purchase of the two largest cryptocurrencies for $40 million. On Wednesday, the company announced that they had made additional purchase of $50 million worth of Bitcoin and Ether. This made the total investment of $90 million with 31,000 Ether and 762.21 Bitcoins in the pocket of the Meitu. This news also added strength to Ethereum prices on Wednesday.

On the flip side, the data from CryptoQuant, an analyst company, showed that the number of Ethereum held on centralized exchanges has dropped to a new lowest level. Despite a price rally of more than 400% since September 2020, the number of Ethereum held on exchanges has gradually dropped within the same time frame. This suggests that investors have actively bought the currency and moved it to cold storage or other platforms.When in late 2020, the Ethereum prices started increasing, about 26 million ETH were stored on exchanges now the figures have reached to its lowest at 21 million. About 115 million Ether tokens are in circulation, and only 24% are currently sitting on centralized exchanges.
Some analysts believe that investors could have moved their funds from centralized exchanges to decentralized platforms like Uniswap and Sushiswap as two sectors NFTs and Defi have gained a lot of traction lately.

Daily Technical Levels
Support Resistance
1752.00 1832.50
1698.33 1859.33
1671.50 1913.00
Pivot Point: 1778.83The technical side of ETH/USD seems unchanged as it’s trading with a bearish bias, falling to the $1,791 level and facing immediate support at the $1,732 level. Ethereum is likely to bounce off over the $1,732 level; however, if the pair fails to bounce off over this level, we may see a sharp drop until the $1,651 level. On the higher side, the pair may find resistance at $1,876 area. The 20 and 50 periods EMA are also in support of a selling trend. Let’s keep an eye on the $1,732 level to buy over and sell below this level. Good luck!