The On-Balance Volume (OBV) metric shown on the chart recorded lower lows.
A leading analyst revealed an Ethereum price prediction of $5000 based on the bulls’ ability to sustain a breakout rally past a key resistance level.
Meanwhile, the leading altcoin posted a 1.7% uptick over the last day to reach $3,870.
Analysts noted that BlackRock’s recent transfer of Bitcoin and Ethereum to Coinbase Prime added to the cautious mood.
However, some believe the move is aimed towards potential portfolio rebalancing rather than selling.
For the fourth time, Ethereum price is approaching a critical technical juncture after retesting a familiar support zone that had already been tested three times in recent weeks.
Each touch of this level has drawn in renewed buying interest, but the repeated pressure suggests that this support is becoming increasingly fragile.
Currently, ETH is hovering just above a key “volume shelf,” an area where significant trading activity has previously taken place. The Ethereum price level of $4,500, represents the next price target for the altcoin.
However, it is crucial for the bulls to sustain the current support and stage a massive rebound from the upper psychological level of $4,000.
The next upside target sits at $4,500 if the buyers will be successful in maintaining upward momentum.
$4,955 is the next important level to watch out for once Ethereum breaks past the first target.
However, failure to hold the current support could hinder recovery and trigger a sharp correction below $3,800.
Overall, Ethereum remains in a tightening range, with clear levels defined by strong volume and recurring reactions.
As Donald Dean notes, the market is watching closely since the next move from the current zone could define the tone for Ethereum as it heads into the next quarter.
According to expert analyst Bryant, the daily chart indicates a divergence between price action and volume momentum to reveal a bullish Ethereum price prediction.
Zooming to the 1-day chart, the price of ETH formed a series of higher lows which often act as a signal for growing support and steady buyers’ accumulation.
On the other hand, the On-Balance Volume (OBV) metric shown on the chart recorded lower lows.
When used to determine an asset’s future price projection, divergence between the two metrics often signals the magnitude of buying pressure.
Right now, strengthening price action against weakening volume shows selling pressure is dropping and this could set the stage for an Ethereum price breakout.
Despite the few pullbacks that have taken place in recent days, Ethereum bulls are showing up at every reversal to buy the dip and absorb the supply. As such, it is important for traders to watch the $3,800 price level.
Market analyst Ted Pillows reported that spot Ethereum ETFs saw a sharp net outflow of $184 million on October 30, driven mainly by $118 million in sales from BlackRock.
Data from CoinGlass confirmed the broader picture, showing weekly outflows climbing to $386 million with only minor inflows to offset the losses.
As you zoom into the chart, the stream of red bars on the charts indicates large holders are still selling.
This increase in supply comes as Ethereum’s price hovers around the ascending trendline near $3,800.
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