Blockchain News

Ethereum Breaks into the $1,700 Range Briefly as Traders Scramble for Profit

Before the closing of trade on February 2, the price of Ethereum [ETH] increased, reaching its highest level in more than four months. How did traders react, and how might their reactions effect the price of ETH in the future?

The daily price chart for Ethereum [ETH] on February 2 may not have showed any noteworthy price movement. When this timeline is viewed in further detail, it can be seen that ETH surpassed $1,700 and briefly traded at $1,713.

The price crossed $1,500 for the first time in over four months, prompting traders’ responses.

At the time of writing, the asset was trading at approximately $1,640 and appeared to have lost a tiny amount of value. Despite the minor decline, the price was still trading above the support line set near $1,500.

In addition, the Relative Strength Index indicated that Ethereum was still heading in a bullish manner. At the time of writing, the RSI on a daily timescale was greater than 60.

Netflow may be a more accurate indicator of how investors reacted to Ethereum’s (ETH) slight increase on February 2nd. The observed Netflow data indicates that on February 2, more Ethereum (ETH) entered than left exchanges.

Since the influx exceeded 29,000, sellers were prepared to cash in. However, the measured influx was steady; there was no discernible increase.

The absence of a surge may imply that the influx is inadequate to meaningfully alter the price of ETH. At the time of writing, the trend line had reversed, and outflow had surpassed inflow.

According to CoinMarketCap, there are presently over 122 million Ether in circulation. The amount now available on exchanges accounts for around 11% of the total supply.

Even if there was a rush to cash out when the price of ETH soared, this shows that a negligible portion of the total supply made its way to trading platforms.

Observing Glassnode’s Percent Supply in Profit indicated that a substantial chunk of the ETH supply is currently generating interest. As noted in the observed graph, over 64% of the supply was lucrative as of this writing.

Now that ETH’s price has reached its highest level in months, short-term investors may be tempted to sell their holdings. Indicators indicate that more ETH are being held than are being sold, so this event should not have a significant impact on the price of ETH.


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