Analysts predict that a drop in Ethereum (ETH) reserves on centralized exchanges could help the ETH price rise to $ 3,000 in weeks.
ETH is currently trading above $ 1,100 and has a bullish outlook on the recent decline to lows of $ 900. While the cryptocurrency's all-time high (ATH) of $ 1,432 remains elusive, some analysts are now saying that the next uptrend for Ethereum could more than double the value of ETH / USD.
This is the opinion of an analyst which says that ETH could rise to $ 3,000 in a few weeks after breaking the ATH. Another expert pointed to Hodler's strategy of not selling in the short term and described it as bullish. He predicts ETH targets of $ 5,000, $ 10,000, or even $ 20,000 in the long run.
Declining reserves on exchanges is a bullish signal for ETH
According to Nugget News CEO Alex Saunders, ETH reserves on the stock exchanges have plummeted in recent days and “exchanges could be left empty-handed in ETH in 48 hours". Therefore, the demand for ether is increasing rapidly. But it seems that there are very few people looking to sell short term.
The same point of view is shared by Byzantine General, another highly respected cryptanalyst and trader, who says that the above scenario is causing a “sell-side liquidity crisis” for Ether.
According to Saunders, the data suggests an imminent explosion in the price of ETH.
“We all know what happened when the demand for $ BTC exceeded the supply. The course has quadrupled in 90 days ”.
"I'm not going to share all the data, I'll just tell you what you need to know. There is an extreme liquidity crisis of $ ETH on the sell side”, the analyst indicated.
Simply put, it appears that investors see Ethereum as an inherently valuable asset that can be held for the long term. Thus, they remove assets from exchanges, presumably to "save" them. This leads to a massive demand for ETH, which in turn increases the pressure to buy.
ETH / USD has risen to a high of $ 1,230 in the last hour. However, the bulls face resistance at this level which coincides with the barrier provided by the center line of an ascending parallel channel. Buyers need an upper bound uptrend that extends to prices above $ 1,300.
If they manage to break above the vertex line of the channel, the bulls could retest recent resistance levels around $ 1,350 and potentially hit new all-time highs above $ 1,500. Ethereum could rise to $ 2,000, $ 3,000 or more in the next one to three months in pricing mode.
On the other hand, a drop below $ 1,200 could see prices hit the 100 hourly simple moving average of $ 1,105. From here, sellers can target recent lows of $ 900.