Ethereum’s native token Ether (ETH) has plunged by more than 20% after establishing its record high at around $4,867 on Nov. 10, 2021. Nonetheless, the sharp price pullback does not mean ETH can’t pursue a new record high in the next few months, as several widely-tracked technical, macroeconomic and on-chain indicators suggest.
One of these indicators envisions Ether’s price reaching $5,000 in the first quarter of 2022 while others look are poised to support the bullish bias.
ETH price painting falling wedge
Ether’s recent price correction is painting a potential classic bullish reversal pattern known as “falling wedge.”
In detail, falling wedges begin wide at the top but contract as the price moves lower. As a result, the price action forms a conical shape that trends lower as the reaction highs and reaction lows converge. Traders realize a bullish bias only after the price decisively breaks above the wedge’s resistance.
As a result, expectations remain high that the ETH price would break above its falling wedge resistance in the coming sessions. In doing so, it would rise by as much as the maximum distance between the wedge’s upper and lower trendline when measured from the breakout point.
Literally unchanged…$ETH is going to $5k pic.twitter.com/11mAQiJxJS
— Kong Trading (@KongBTC) January 4, 2022
That roughly puts the price target for Ether at $5,000.
ETH deposits to exchanges drop
Traders typically move their tokens to exchanges when they intend to sell/trade them for either fiat, stablecoins or other cryptocurrencies.
Generally, a higher number of transactions made to crypto trading platforms reflects a high selling sentiment in the market. Conversely, if the token transactions plunge, they show a strong holding sentiment in the market.
Data collected by blockchain analytics service Glassnode show that the number of on-chain Ether deposits to exchanges dropped to its 23-month low on Jan. 3.
Additionally,…
![Anticipation for Ethereum [ETH] 2.0 rises as metric reaches all-time high](https://crypto.newswireservice.net/wp-content/uploads/2023/01/ethereum-wale-1000x600-350x250.jpg)
