Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange, recently expressed his expectations for an upcoming Ethereum price rally. His positive outlook is based on the all-time high of 19,375,242 ETH locked in the Beacon chain smart contract.
Zhao suggests that the rising number of locked Ethereum tokens could lead to a decrease in the overall supply of ETH available in the market, potentially driving up its price.
Ethereum’s Promising Market Indicator
Santiment, the top crypto analytics firm, has highlighted a favorable metric for Ethereum investors. The 30-day market value to realized value (MVRV) ratio, commonly used by traders to identify overbought or oversold conditions, is now moving out of the “danger zone” and towards the “opportunity zone.” Historically, this zone is where ETH prices have reached their lowest point before rebounding, indicating a possible uptrend in the near future.
Interestingly, Santiment also observed a correlation between Ethereum’s recent local price peak and the Ethereum Foundation transferring 14,999 ETH to the Kraken crypto exchange. This event could have influenced Ethereum’s price fluctuation and might signal upcoming dip-buying opportunities for investors.
Potential Downtrend in Altcoins
While optimism surrounds Ethereum’s prospects, some analysts caution against a possible downward trend for altcoins. Pseudonymous analyst and trader Bluntz has warned that altcoins might be trending downward on larger timeframes, possibly experiencing more significant drops than expected.
In the case of Ethereum, Bluntz predicts that the second-largest cryptocurrency could face a decline soon after closing below a weeks-long ascending channel. His analysis suggests Ethereum might fall below the $1,700 mark in the near future.
However, investors should remain vigilant and monitor market developments closely, considering various opinions and analyses to make informed decisions about their crypto investments.