- An entity on leading exchange Bitfinex has been accumulating Ethereum en masse, implying a spike in demand from investors.
- The total value locked on the Ethereum network has climbed consistently since the beginning of 2022.
- Analysts believe Ethereum price is tapping resistance at $3,500; a breakout could push the altcoin higher.
Ethereum price is on track to climb higher as the demand for the altcoin increases. Investors continue to accumulate ETH, pulling the altcoin out of its circulating supply.
Ethereum price could start trending higher
Ethereum price has benefited from an accumulation by investors – considered a positive sign for the altcoin’s price trend. Proponents have noted a spike in demand for the altcoin on Bitfinex, a leading cryptocurrency exchange. An entity has been accumulating ETH in large volumes, buying en masse and fueling demand for the altcoin.
Typically, demand from institutional investors and large wallet entities drives the altcoin’s price higher. Since the implementation of EIP-1559 and staking on the ETH2 deposit contract, there have been days and weeks of negative issuance for Ethereum. The altcoin’s circulating supply is shrinking consistently.
Proponents believe Ethereum’s transition to Proof-of-Stake (PoS), is a key milestone awaited by investors and this could be leading to a spike in institutional and investor interest in Ethereum.
Interestingly, the total value locked on the Ethereum network, considered a measure of utility and adoption by investors, is rising. Since the beginning of 2022, there has been an increase in the TVL on the altcoin’s blockchain. A key barrier to Ethereum adoption, network fees have dropped 90% over the past five months, bringing more investors to dApps on the blockchain.
Analysts have evaluated the Ethereum price trend and predicted a retest of resistance at $3,470 as the altcoin eyes its target at $3,500. Though analysts have argued the presence of bearish momentum in Ethereum’s price trend, the altcoin is on track to break out.
@IAmCryptoWolf, a crypto analyst and trader, has observed a right-angled descending broadening wedge pattern on the Ethereum chart. This pattern is indicative of a bullish reversal in the altcoin.
If we zoom in on the 4h, I spot a megaphone pattern aka right angled broadening wedge. $ETH https://t.co/Ia7SjFqm0C pic.twitter.com/nApyrPeVsg
— Wolf (@IamCryptoWolf) April 7, 2022