Ethereum (ETH) price prediction: multiple on-chain indicators show bullish, short-term target 4800 USD

Despite facing selling pressure recently, the market sentiment for Ethereum (ETH) is becoming increasingly strong. Data shows that Ethereum exchange reserves have decreased by 128,000 ETH in the past week, indicating that whales and institutions are accumulating. Meanwhile, the number of on-chain active addresses surged by 108,000, demonstrating strong network activity and investor confidence. This article will explore the bullish signals behind these on-chain indicators, the current key technical levels, and why traders are betting on the rise of ETH.

Exchange reserves decline, indicating that ETH is being accumulated

According to data from CryptoQuant, Ethereum's exchange reserves dropped from 17.205 million to 17.073 million in the past week, with a net outflow of 128,000 ETH. This phenomenon of assets flowing from exchanges to private wallets is often seen as a signal that whales and institutions are accumulating assets. Historically, when large amounts of tokens are withdrawn from exchanges, the market circulation supply decreases, thus creating a bullish momentum, which is a positive signal for Ethereum holders.

Active Addresses Surge, Network Activity Strong

At the same time, another key metric has also strengthened Ethereum's bullish outlook: investor interest and rapid adoption are on the rise. Data from CryptoQuant shows that during the recent price drop, the number of active addresses on Ethereum surged by 108,000 within 48 hours. This indicates that despite facing short-term selling pressure, Ethereum's network activity remains strong, and investor confidence is also increasing simultaneously. During this period, the price of ETH rose from $4,433 to $4,550 and maintained at $4,507 at the time of publication, with a daily rise of 0.35%. Additionally, alongside these on-chain dynamics, spot trading volume has also increased by 25%.

Bullish Sentiment in the Derivatives Market

In the derivatives market, we can observe that day traders are betting on long positions. According to data from CoinGlass, the long-short ratio of ETH/USDT on mainstream CEX has reached 2.17, indicating that traders' bullish sentiment is very strong. The data shows that 68.49% of traders on CEX hold long positions, while only 31.51% have chosen short positions.

ETH Price Trends and Key Levels

(Source: TradingView)

From a technical analysis perspective, ETH has retested the key level of 4500 USD. After the breakout, this level has transformed into an important support level. The previous rise was driven by a breakout of this level, and although the price has retested it at the time of writing, the bullish pattern remains solid. During the recent pullback, ETH faced resistance from a descending trend line but successfully broke through this obstacle, clearing the way for further increases. If ETH can maintain above 4500 USD, it may rebound to 4865 USD. However, if it falls below 4500 USD, the bullish expectations may become invalid and trigger heavy selling pressure.

Conclusion

The positive changes in on-chain data of Ethereum, particularly the decrease in exchange reserves and the increase in active addresses, provide a strong bullish signal for the cryptocurrency market. These fundamentals corroborate the bullish sentiment in the derivatives market, together laying the foundation for the next rise of ETH. Investors should closely monitor the key support level of $4500 to assess its short-term trend.