Ethereum price gears up for explosive rally as buying activity accelerates
- Ethereum buying activity has accelerated significantly over the past hour, coinciding with a spike in the price of the altcoin.
- Over 16,000 Ethereum tokens were bought within an hour, earlier today.
- On a net basis, Ethereum continues to outperform Bitcoin since the asset’s May 2021 top.
- Analysts predict Ethereum price is likely to continue its bounce.
Ethereum price has kicked off its recovery after a recent drop. There is a significant spike in buying activity as traders accumulate Ethereum.
Ethereum price on track for rally with spike in accumulation
Buying activity has accelerated in the Ethereum network. Analysts at the crypto intelligence platform IntoTheBlock have noted a spike in buying activity in the altcoin.
As buying activity accelerated, over 16,000 Ethereum tokens were bought within 60 minutes earlier today. The demand across exchanges pushed the altcoins price to $3,300 again, based on data from IntoTheBlock.
Ethereum is close to the end of Proof-of-work (PoW) issuance. The flexible staking with deposit and withdrawal facility is likely to increase the participation in ETH2 ecosystem. Despite the recent correction in Ethereum price, the altcoin’s price is holding well. This is the difference between the May correction and the ongoing price rally in Ethereum.
Proponents believe that Ethereum price still outperforms Bitcoin since the asset hit its May 2021 top. Mark Cullen, analyst at AlphaBTC notes that Ethereum price has retested its lower mid range and the 61.8 golden zone. The analyst has predicted a push to the 21 daily exponential moving average.
-- $ETH UPDATE --
— AlphaBTC (@mark_cullen) January 11, 2022
#Ethereum retested the lower mid range & also the 61.8 golden zone
Looking for a push to the 21 Daily EMA and medium of the larger range
The running flat minimum extension in wave C has been meet#cryptocurrency https://t.co/xlq8B9PfWs pic.twitter.com/WjbXaD2hq4
@ShardiB2, a crypto analyst and trader believes that Ethereum is totally oversold and there may be a reversal.
$ETH
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 11, 2022
Got totally oversold, everyone gave up hope, and that is exactly when a big FAT reversal candle smacks you right in the face.. pic.twitter.com/z7rUaeQkQa
FXStreet analysts believe that Ethereum price could rebound towards $4,000 in the current uptrend.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
