The Ethereum price holding above the $2000 mark has instilled positivity regarding a potential market bottom. With retail traders selling less and large holders increasing their accumulation, a bullish trend is anticipated, indicating a potential recovery on the horizon.
The recent bullish momentum in the crypto market, starting from the second week of September, coincides with expectations of a 0.5% rate cut by the U.S. Federal Reserve during the FOMC meeting. This move is projected to stimulate economic activities and drive investment into assets like cryptocurrency, potentially paving the way for a price recovery in leading digital assets such as Bitcoin and Ethereum.
Data from Santiment shows a significant capitulation of 31,702 ETH by Ethereum holders on September 10th, signaling the exit of weaker hands from the market and easing selling pressure on the asset. Similar patterns during past selling events have helped establish support levels for Ethereum, contributing to its stability.
Moreover, the increasing supply held by top addresses, currently at 43.98%, reflects a strong belief in Ethereum’s future price growth potential.
The Ethereum price chart indicates a recent rebound from the $2150 support level on September 7th, showcasing an active demand that lifted the asset by 7.5% to stabilize at around $2300. This recovery also unveils a double bottom formation, a pattern typically observed at the end of a correction trend, hinting at a potential surge in ETH price towards $2800 and beyond.
Although the supply of ETH on exchanges has risen to 21.3 million coins, suggesting a possibility of profit-taking by speculative traders, ongoing accumulation by whales and institutions alongside the reversal pattern point towards a positive outlook for Ethereum price.
In conclusion, despite the increase in ETH supply on exchanges, the combination of active accumulation by larger entities and the emergence of a major reversal pattern paints a bullish picture for the Ethereum price trajectory.