Ethher (ETH), Ethereum’s native cryptocurrency, is a quote at a level not seen four years ago, and the market is hoping to surpass its historic largest (ATH).
Currently, the second most valuable digital asset on the market is negotiated for $4,500. It is 7% below the $4,891 record reached in November 2021.
To overcome previous brands, ETH creates some degree of uncertainty among investors at what is called the “price exploration zone,” that is, at a level where there is no support or technical resistance.
So that’s possible Ethereum native currency prices will be lateral for a whilethe market assimilates these new levels.
Burak Kesmeci, Data Platform Analyst On-chain Cryptoquant states that ETH netflows show that a simple mobile average for 30 days (SMA30) is located in the negative region (-40,000 units of ether).
This means that over the last month more ether left the exchange than it had ether in it. This number is negative, but it is interpreted as a bullish signal. This is because it reflects that investors are accumulating or maintaining their holdings instead of selling.
That analysis involves a bar chart measuring the difference between the exchange input (green) and the ETH outlet (red). Positive values indicate that more ETH is in the exchange platform, suggesting sales pressure.
On the other hand, negative values They show that more ETH is leaving the market where it is interpreted as a sign of accumulation.
“The simple mobile average (SMA30) remains in the negative territory, but the upward trend for Ethereum could continue,” analysts say.
Kesmeci also believes this is happening because “the funds cited in the stock market (ETF) are putting buy pressure on them and pushing prices up.”
After starting with more shadows than lights, ETH’s ETFs now have excellent performance. As reported by Cryptootics, on Monday, August 11th, these financial products won $1 billion in a day for the first time in history.
Since launching in July 2024, ETFs have accumulated over $120 million.
It is important to understand why the excellent performance of an ETF directly affects the price of an ETH. Operations require managers to maintain underlying assets to support their actions.
This means that if demand for Ethhe’s ETFs increases, managers will need to buy more asset units in the market.
Financial Markets Analyst Dean Popplewell points out that many investors are making profits as ETH approaches ATH. However, he makes it clear that these are small sales and “for now it’s not important.” Furthermore, “Emotions are more than euphoric, but this can last for a while before it cools down.”
This enthusiasm can be maintained, but cryptocurrencies remain near record levels, driving demand and supporting ETH exploring new price areas.
Now, for this to happen, it is important to attach to the macroeconomic context. This means there is no sudden rise in US inflation or interest rates, and no new geopolitical tensions that could affect the market.
This is because financial speculators prefer a stable environment to invest in risky assets such as cryptocurrencies. When there is economic turbulence, they usually evacuate to equipment that produces lower yields, but are not exposed to market volatility, such as treasure bonds.
