Summary
TLDR: Ethereum’s price is increasing steadily, with on-chain insights suggesting a bullish trend that could lead to a new all-time high. However, high RSI and NUPL indicators signal caution, as a correction may be imminent. ETH price prediction shows potential for reaching $5,000 if key resistance levels are broken, potentially driven by BTC price movements and the approval of an ETH ETF.
Key Points
1. Ethereum (ETH) has demonstrated formidable strength recently, with its price steadily increasing and on-chain insights painting a promising picture for a potential bullish trend leading to a new all-time high.
2. The Relative Strength Index (RSI) for Ethereum has seen a notable increase from 73 to 82 over the past month, indicating strong buying pressure. While a high RSI above 70 can suggest overbought conditions and a potential pullback, it’s not always a reliable indicator of a downturn, as ETH prices have historically risen despite high RSI levels.
3. The Net Unrealized Profit/Loss (NUPL) indicator for ETH shifted from ‘Optimism – Anxiety’ to ‘Belief – Denial’ level, signaling that most ETH holders are now in profit. This shift can indicate a bull market gaining momentum, but a fast-growing NUPL status could soon change to ‘Euphoria – Greed,’ potentially leading to a market peak and correction as investors seek to cash in on their gains.