Ethereum’s price is recovering, now above $1,800, following a significant correction starting December 2024. Analyst Burak Kesmeci believes a bullish trend may emerge as short-term holders approach a critical 4 million mark. Meanwhile, Ethereum long-term holders have increased significantly, signalling confidence in future price growth. However, ETH must surpass its 365-day SMA, currently at $2,849, to establish a solid bullish sentiment.
Ethereum (ETH) seems to be poised for a potential price rally, with recent market movements showing a recovery. The altcoin, having emerged from a prolonged correction that began in December 2024, is now trading above the $1,800 mark. Burak Kesmeci, a notable crypto analyst, suggests that the momentum might be shifting in favour of Ethereum, offering a glimmer of hope for investors who have endured a tough market.
On May 2, Kesmeci pointed out that the activity of short-term holders (STH) is a positive indicator for Ethereum’s future price. Currently, the number of traders with ETH held for less than 155 days is approaching a critical level of 4 million. Traditionally, exceeding this number has been a signal for potential price upswings, a trend observed in Ethereum’s history during 2022 and 2024. However, with STH at 3.92 million, it’s vital for this threshold to be crossed to indicate bullish market strength.
These short-term investors usually act based on market trends and price changes, frequently looking for quick profits. Their increasing presence could signal new market interest, but Kesmeci cautions that as long as STH numbers remain shy of 4 million, the bullish sentiment might not be enough to prop up the current price rally.
On another front, Ethereum’s long-term holder (LTH) numbers have hit 104.24 million, which suggests strong conviction in Ethereum’s potential for price growth. This trend typically points to holders who, having matured their investments, are holding onto their coins rather than rushing to sell, thus displaying sustained confidence in the asset.
Kesmeci also highlights that Ethereum is currently trading well below its 365-day simple moving average (SMA 365), which is often used to gauge longer-term price trends. The SMA reflects the average closing price over the last year, acting as both a resistance and support line. With Ethereum trading around $1,835, it’s important for ETH to break through the SMA at approximately $2,849 to solidify any expectations of a significant price uptrend.
At the time of writing, Ethereum has seen a slight dip of 0.80% over the last day and trading volumes have also decreased by around 15.01%. It shows that although there’s some positive movement, the market remains cautious and investors might want to keep a close eye on these thresholds before taking any decisive actions.
