Activation of bulls will raise Ethereum by 42% to $ 1543

The price of Ethereum is hovering near a solid resistance barrier, and this key level has prevented ETH from breaking through during the recent rally. However, the situation may change, which may lead to a rapid increase in altcoin No. 1.

As can be seen on the daily chart, after creating a lower low on June 18 at $878, ETH rose by 35% and created a maximum swing at $1192. And while this recovery has been impressive, the altcoin is looking to set an upper minimum, hinting at a full recovery.

If the price of Ethereum can overcome the 8-day exponential moving average (EMA), then the barrier of immediate resistance will be taken and rise to $ 1543. This level has been an obstacle for ETH since the breakdown on June 1.

The upward movement will mean that the bulls are serious, and will probably raise the price of Ethereum by 42%. Here, the 34-day EMA coincides with the $1543 barrier, making this merger an upper limit for ETH.

This bullish outlook is supported by a steady increase in the number of investors owning between 100 and 100,000 ETH, which increased from 44,100 to 44,600 between June 9 and 23.

Approximately 500 new addresses have joined the Ethereum blockchain, suggesting that investors are potentially interested in buying on drawdown.

Another confirmation of the potential bottom of ETH is the decrease in the number of deposits observed in the ETH 2.0 staking address. At the moment, about 12.0 million ETH has been invested in this contract, but over the past two months, the number of deposits has decreased.

On May 2, deposits rose to 1811 ETH, but as of June 23 fell to 283. Such a sharp decline in the number of users interested in staking their ETH may indicate that investors have capitulated due to the recent drop in the price of Ethereum from $ 4900 to $ 1100.

Confirmation of the bearish scenario is the recent increase in the amount of ETH stored on exchanges, from 15.87 million to 16.33 million In less than two weeks, approximately 460,000 ETH were sent to centralized trading platforms.

If the price of Ethereum suddenly falls, these investors may start selling in a panic and amplify the bearish momentum, leading to a cascading collapse. For this reason, market participants should exercise caution.

Finally, the number of new addresses joining the ETH blockchain has not changed, indicating that investors are not interested in buying Ethereum at current prices.

Between June 16 and 23, the 7-day moving average of this indicator fell from 73,277 to 67,077, which represents a net decrease of 8.4%.

Meanwhile, on-chain metrics do not allow to form a bullish picture and draw a further downward trend, at least from a macroeconomic point of view.

If the price of Ethereum closes the daily candle below the support level of $993, it will create a lower low compared to the candlestick closing on June 18. Such a development would reverse the bullish thesis and trigger a 12% correction to $878, the June 18 low. Here, buyers can regroup and give a new impetus to recovery.