Ethereum (ETH) Gathers Momentum as On-Chain Data Suggests Market Sentiment Shift
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Ether (ETH) has shown positive indications of a potential upturn, driven by an improved market sentiment and crucial indicators from Glassnode suggesting that investors are holding onto their assets rather than selling, a trend that has consistently pointed to increased accumulation.
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The reduced inflows into exchanges demonstrate a decrease in selling pressure, which could translate into improved market sentiment. Such a shift may see less investors inclined to liquidate their positions at current levels, providing Ethereum the breather it needs to rebound from its recent dip.
Ethereum Exchanges’ Net Position Change Decreases
According to data provided by Glassnode, on-chain metrics suggest that exchanges have seen a notable drop in net position changes in recent times. Historically, this indicator points towards reduced selling pressure as well as increased accumulation of funds, which could prove particularly beneficial for Ethereum
Ethereum Exchange Net Position Change decreases
| Source: [Glassnode](https://studio.glassnode.com/metrics?a=ETH&m=distribution.ExchangeNetPositionChange)
As previously mentioned, this phenomenon translates to reduced selling pressure on the market, implying more investors are inclined to buy and hold onto their position rather than selling in today’s market conditions
Key Metrics Indicate Increase Accumulation
Recent declines have led to increased fears on the part of many who believe that the potential breakthrough could be hindered without a successful rebreak across the 200EMA to the upside
Key Signals to Watch
Furthermore, the current market behavior as well as the exchange statistics suggest that the decline at the 200-day trendline could potentially slow to a halt if bulls show renewed interest in a continued upward trend
Important Psychological Levels
Currently trading, Ethereum is faced with not one but two of major psychological levels in which failing to reclaim these thresholds of $2,730 – $2,650 potentially could lead to losses close to $2,240
Conclusion:
It may be concluded that this sudden shift in sentiment presents many opportunities for Ethereum going ahead. With reduced exchange inflation and increased accumulation levels present, the cryptocurrency should recover from its recent low significantly.
