Key Highlights:
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Ether dropped to $3,500 on Thursday; however, Onchain data indicated no signs of a significant further decline, hinting at possible growth in 2025.
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The primary barrier is currently the $4,500 price resistance for ETH.
Market experts suggest that despite the recent 9% decrease from its seven-month peak, Ether’s (ETH) upward trajectory remains unharmed.
According to Cointelegraph Markets Pro and TradingView, Ether’s price bounced back to $3,600 after a swift fall to $3,500 during the early hours of trading in Asia on Thursday.
Low Sales Pressure on Ether
The ETH/BTC exchange inflow ratio indicates that Ether is experiencing lower sales pressure compared to Bitcoin, which could lead to continued outperformance. This comes from the latest weekly crypto market reports.
The attached chart illustrates that this ratio reached a five-year low in May, suggesting significantly lower sales pressures for ETH than for BTC. Even though the ratio has improved since then, it’s still not at a high level (indicated in red), which means that much less ETH is being sent to exchanges compared to Bitcoin, supporting potential gains in the ETH/BTC pairing.
“The relatively low ETH/BTC exchange inflow suggests a lack of sales pressure,” noted Cryptoquant.
“This could be a positive signal for ETH in comparison to Bitcoin, potentially aiding its growth alongside the ETH/BTC pair.”
The expected continued outperformance of Ether is further backed by an increase in the ETH/BTC ETF retention rate, which rose from 0.02 in May to 0.12. This trend suggests that investors are now holding more ETH than Bitcoin, highlighting a rising demand for ETH and its price’s potential growth.
At the same time, the Spot Ethereum ETF has shown robust performance, celebrating its first year with significant inflows amounting to $332.2 million this Wednesday, while the Spot Bitcoin ETF faced a downturn totaling $285.2 million over three days. Essentially, the Spot Ether ETF has gained almost $8.7 million in net inflows, now managing over $16.6 billion in assets.
Update: US Spot Ether ETF reached $16.6 billion AUM on its first anniversary, with $3.9 billion inflow streak over the past three weeks.
What On-Chain Data Reveals About Ethereum’s Price Levels
Utilizing Ether’s cost-based model, GlassNode Analyst offers crucial levels for traders to monitor. This model assesses average purchase prices of ETH to provide insights into what economically active investors are paying.
On the downside, critical support levels lie between $2,000 and $3,000, with a realized price of $2,100, the market average at $2,500, and active realized prices at $3,000.
“This price range represents essential support should the cost dip toward it.”
On the higher end, the first significant resistance point is $4,500, with substantial historical resistance noted around this level during previous market cycles. Breakouts above this threshold often correlate with heightened market activity and unstable market structures.
“Thus, $4,500 is a pivotal level to watch, especially as Ethereum continues to ascend, potentially leading to speculative bubbles.”
As noted by sources, Ether bulls should aim to drive prices beyond $3,860 to ignite the next surge towards $4,000.
This article does not offer investment advice. All trading and investment decisions entail risk, and individuals should conduct their own research.
