Ethereum Could Hit $3,000 Soon, Analysis Shows

As Ethereum receives another wave of bullish sentiment, peaking on January 25, 2021 with a new all-time high of $1,467.78, customers are starting to withdraw Ethereum tokens to personal wallets, according to data from Glassnode. 

The analysis company published a graph, showing a massive exodus of Ethereum from crypto exchanges to personal wallets or other custodial services. Over one million ETH, worth over $1,3 billion, are now out of the exchanges, which, according to experts, is a clear bullish indicator. Furthermore, the shift means investors are more confident about Ethereum’s price point in the near future, which also fuels the $3,000 short-term uptrend speculation.

Source: Glassnode

Glassnode’s chart also shows an interesting pattern – since the start of 2021, Ethereum records an exponential outflow of tokens from exchanges to private wallets, which correlates with the price action of the second-largest cryptocurrency to date. However, the massive exodus started on January 19 and plateaued on January 24. 

However, some technical indicators are showing a rather different picture. Despite Ethereum trading slightly above the 50-day Simple Moving Average (SMA) on the 4-hour chart and buyer consolidation at the $1,300 support zone, Ethereum must keep the $1,300 price point at any cost. Data shows that a move below $1,300 could retest the $1,272 support zone before reclaiming an upwards trajectory. 

If such an event occurs, Ethereum bulls might consolidate around $1,300 and spark another leg of upwards momentum, reaching new record highs. Experts are claiming $1,500 to be a pivotal point in Ethereum’s price development. If Ethereum breaks above the $1,500 mark, the other possible resistance areas are set at $1,800 and $2,000.

Pricewise, Ethereum currently trades at $1,287.66, which comes amid Bitcoin bouncing back from the sub-$30,000 area. The industry leader seems to be having difficulties staying afloat after a rollercoaster week, starting at a price point of $37,755.89 only to hit a weekly bottom of $28,953.37 before bouncing back to $31,656.16 as of press time. 

Trading experts are explaining that Bitcoin is limited by the 50-day Simple Moving Average. Indeed, after reaching its all-time high of $41,941.56, the world’s largest cryptocurrency to date is in a continuous downhill ride. 

Source: Tradingview

The 200-day SMA keeps Bitcoin from dipping further. Some of Bitcoin’s price predictions include a dip to around $22,000 if Bitcoin continues with its downhill ride. However, a break above the recent price dips could result in an uptrend, which may reach a new high in the $42,000 region.