Ethereum (ETH) Considers Its Next Move After SEC Investigation Ends

Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization, is exhibiting mixed signals as it navigates a period of

Arslan Butt•Thursday, June 20, 2024•1 min read

Ethereum (ETH) Considers Its Next Move After SEC Investigation Ends

Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is exhibiting mixed signals as it navigates a period of consolidation. While its price action remains relatively flat, on-chain metrics and technical indicators suggest potential for a bullish breakout.

MVRV Ratio Indicates Potential Overheating

A key metric, the Market Value to Realized Value (MVRV) ratio, suggests ETH might be nearing overbought territory. Compared to Bitcoin (BTC), ETH’s MVRV has risen rapidly, indicating a higher market valuation relative to its on-chain activity.

However, analyst Ki Young Ju argues that the upcoming launch of spot Ether ETFs could offset this concern, attracting new investors despite the high MVRV.

Analyst Predicts $10,000 ETH by Year-End

Pseudonymous analyst Yoddha identified a bullish reversal pattern on ETH’s chart, suggesting a potential surge towards $10,000 before 2024 ends. This prediction aligns with Ethereum’s recent dominance in the market, surpassing Bitcoin’s dominance growth over the past week.

Exchange Outflows Signal Reduced Selling Pressure

A positive development for ETH is the significant decline in its supply on cryptocurrency exchanges. This trend suggests reduced selling pressure and potential accumulation by long-term holders.

The current Netflow on exchanges also shows a dominance of outflows, further strengthening the on-chain data.

Ethereum Price Analysis: Consolidation Before Breakout?

Despite a recent decline, ETH is currently trading above $3,500 and the 100-hourly moving average, indicating some buying pressure. A short-term rising channel on the hourly chart suggests potential bullish momentum if ETH can overcome resistance levels at $3,600 and $3,650.

Conversely, a failure to breach these resistance levels could lead to a decline towards $3,500 or even lower.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.