Ethereum’s Potential Bull Run: Key Indicator Points to Rebound

Ethereum’s recent rebound has caught the attention of market participants and analysts due to various positive signals indicating potential growth. One of the key indicators of this positive sentiment is the decline in supply held within Ethereum mining wallets since the beginning of 2024.

Mining wallets have seen a 4.5% reduction in Ethereum reserves since their peak in June, as reported by Santiment. This decrease in supply could potentially be reversed with the recent price rebound, suggesting a possible trend reversal in the near future.

Technical indicators and on-chain data are also aligning with this cautious optimism surrounding Ethereum. Chart patterns have shown a series of lower highs versus lower lows, but recent price action has hinted at a potential trend reversal. The stochastic RSI indicator has given a bullish crossover, indicating a rising short-term momentum.

Despite the positive signs, there are mixed signals in the market. While the general supply on exchanges has remained stable, net flows have shown periodic peaks of both inflows and outflows, reflecting the overall uncertainty in the market.

Coinglass’ liquidation heatmap data has indicated significant liquidation levels between $2,300 and $2,450, suggesting a bullish bias in the market. These liquidation pools, totaling over 32 million worth of Ethereum, could potentially act as magnets to drive prices higher.

Overall, Ethereum continues to display resilience amidst market volatility, with a recent minor rebound potentially paving the way for a more significant move in the future. Investors are advised to monitor the supply levels of mining wallets closely, as an increase could signal the onset of the next bull run in the Ethereum market.