As Ethereum reclaims $2000, here is what you should know

Amanda Thibeault November 29, 2023
As Ethereum reclaims $2000, here is what you should know

Following a few weeks of trading within a narrow price range, Ethereum [ETH] has reclaimed the $2000 price level.

The rally above this key price level came amid a surge in new demand for the leading altcoin during the trading session on 23rd November, data from Santiment showed. 

According to the data provider, the daily count of new addresses trading ETH began to trend upward on the 21st of November and had increased by 17% by 23rd November. At press time, ETH exchanged hands at $2,068.

ETH’s rally above $2000 coincided with the comeback of green histogram bars on its Awesome Oscillator indicator.

AMBCrypto found that while ETH lingered in a tight price range, it’s Awesome Oscillator returned only red upward-facing bars. This highlighted the state of indecision and low trading activity in the market.

However, with the uptick in new demand recorded in the past few days, the green upward-facing bars of ETH’s Awesome Oscillator signaled that the alt’s price is likely to continue to see growth. 

Green upward-facing bars in the Awesome Oscillator are typically seen after a period of consolidation or a pullback. They indicate that the buyers are taking control of the market and that the price rally might continue. 

Also confirming the re-emergence of bullish sentiment, the MACD line of ETH’s Moving average convergence divergence (MACD) indicator was poised to cross above its trend line at press time. 

When the MACD line of an asset’s MACD indicator is geared to cross above the trend line, it is considered a bullish signal. This means that the momentum of the price is shifting from negative to positive and that the price rally is likely to continue. 

While its price consolidated within a tight range, its Market Value To Realized Value ratio (MVRV) remained positive. This meant that investors who sold did so above their cost basis, seeing profit.

At press time, ETH’s MVRV ratio was 35.02%. This indicated that, given its present value, coin holders would see a minimum of 35% return on their investments if they chose to sell now.

Amanda Thibeault