ETH $2600 as the First Hurdle
ETH deposit numbers on crypto exchanges continue to decrease, Glassnode announced. The seven-day average has just reached a five-month low of 548,940. It could be concluded that Ethereum stored on the side or wallets does not move for retention, which is a bull signal. These statistics correlate with insights recently provided by Glassnode that Ethereum’s exchange inflow volume reached a monthly low of $ 34.27 million, and Ethereum worth $ 63 billion was locked into smart contracts. The Ethereum network is one of the most sought-after cryptocurrencies, as its smart contracts are widely applied in the DeFi and NFT sectors.
These areas were key in helping the recent Ethereum bull race, which saw its market capitalization skyrocket $ 500 billion. As a result, the second-largest crypto was then more valuable than financial giants Visa and PayPal.
Meanwhile, Ethereum whales are recording a record trend of accumulating more coins. It, therefore, shows that they are still in a long-term mood towards ETH.
Looking at the chart on the four-hour time frame, we see that our current resistance is at $ 2650. Meanwhile, we are looking for support in the $ 2300-2350 zone. In general, we need a stronger momentum above the moving average of MA200 and $ 2650 to be more optimistic for continuing the bullish trend. A break above $ 2650 increases the chances of climbing into the next resistance zone around $ 2850-2900. For the bearish option, we expect a further retreat below moving averages and retesting the support zone around $ 2300. A break below $ 2200 would already be a very bleak scenario for ETH, with a possible probability of visiting low again at $ 1700 from mid-May during the crypto market crash.
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