Ethereum On-Chain: $ETH Set to Break-Out of Key Downtrend, Here’s Why $3,500 is not Far

Ethereum On-Chain: $ETH Set to Break-Out of Key Downtrend, Here’s Why $3,500 is not Far

Ethereum ($ETH), the second-largest cryptocurrency by market cap reclaimed $3,000 support again earlier today. The top altcoin like the rest of the crypto market experienced a bearish September with negative returns, but on-chain metrics indicate that the upcoming month could flip bullish helping $ETH get back to bullish ways. The altcoin is currently moving in a price downtrend channel right below the key resistance of $3,153. A break above this resistance point would also help Ethereum to break out of the key price downtrend, restating the bull run again.

After breaking out of the downtrend, the next key resistance would lie at the $3,500 mark and it could very well retest the $4,000 mark. At the start of September Ethereum was trading above $4,000 before recording a near 25% decline throughout this past month. The trading volume for the altcoin remains healthy.

The exchange supply of Ethereum continues to decline and took a sharp dip over the past couple of weeks leading to a 6-month low. A declining exchange supply is considered bullish as it leads to a supply crunch and shows traders expect the price to go higher up.

Ethereum proponents seem to be in a hodling mode and market pundits expect the price to hit new ATHs in the last quarter of 2021.

Ethereum Network Activity Remains Stable, Price to Surge?

The Ethereum network growth has remained stagnant as there has been a great surge in rival networks rising to popularity such as Solana ($SOL) and now Cardano ($ADA) looks to give it a completion as well with the integration of smart contracts. Another reason could be the rising popularity of layer 2 solutions.

The number of active addresses remain strong over the past 6-months, however, the social volume has been on a decline since June, despite a spike in August at the time of London hardfork.

$ETH was trading at $3,024 flipping into green and gearing up for the bullish October. The altcoin is currently 31% below its ATH of $4,362 and many Ethereum proponents expect it to breach the ATH in the final quarter.

Source