- Currently, the orderbook imbalance for ETH stands at 70%
- There is speculation that Ethereum might reach new highs in the near future
Despite Bitcoin hitting an all-time high earlier this year, Ethereum has failed to follow suit, leading to concerns about its momentum. However, recent data on the ETH/USDT pair is offering hope to Ethereum supporters.
Hyblock Capital’s data shows a significant 70% orderbook imbalance for ETH at a 1-2% depth. Historically, when ETH experiences a similar bid imbalance, it tends to mark a bottom and start moving upwards.
The current bid imbalance suggests that ETH could potentially see a similar upward trend in its price.
Source: Hyblock Capital
Ethereum’s Potential in an Ascending Triangle
At the moment, Ethereum seems to be forming an ascending triangle pattern on the weekly chart, with its price respecting the 200-moving average.
This consolidation pattern typically indicates a bullish outlook for ETH, as ascending triangles often precede price breakouts.
The 70% bid imbalance further supports the possibility of an upward movement in Ethereum’s price.
Source: TradingView
Consolidation phases often precede significant price movements, and a breakout could potentially propel ETH to higher price levels.
Weekly RSI Heatmap Analysis
The weekly Relative Strength Index (RSI) heatmap indicates that many cryptocurrencies are currently in a weak or neutral zone, with an average RSI of 40.22%.
This transition from oversold conditions to more neutral levels suggests a possible upward movement for ETH.
Source: Coinglass
With the RSI trending towards more neutral levels and the bid imbalance indicating a potential bottom, there is a possibility of a price surge for ETH in the near future.
Booming ETH-Based Protocols
Vitalik Buterin, the co-founder of Ethereum, recently announced his plans to donate his Layer 2 (L2) and project tokens to support public goods and charitable causes within the ETH ecosystem.
This move not only strengthens Ethereum’s long-term prospects but also solidifies its position in the decentralized finance (DeFi) sector. Despite competition from other platforms like Solana, Ethereum remains a dominant force in DeFi, according to analysts at Kaito AI.
Source: KaitoAI
Key DeFi platforms like Aave, Pendle, and Lido operate on Ethereum, indicating further adoption of ETH and potential price appreciation.
Concerns about Ethereum ETF Flows
Despite Ethereum-based ETFs being a positive development for the cryptocurrency, recent data shows that cumulative flows in these ETFs have hit an all-time low with net outflows of $562.3 million.
The lack of demand for ETH ETFs poses a risk to the market, as some issuers may consider closing their products if demand does not pick up.
Source: X
Despite this concern, ongoing developments in the Ethereum ecosystem suggest a potential price turnaround in the near future.
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