Like the majority of cryptocurrencies, Ethereum has been consolidating as investors stay away from risky investments as central banks around the world keep raising interest rates to control inflation.
However, one market analyst believes that this could be the start of one of the biggest bull runs in the history of the cryptocurrency market. At the time of writing, ETH was trading 0.36% higher at $1293 compared to the previous day. Although the price of Ethereum is trending up, the price chart shows increasing volatility. The Relative Strength Index (RSI) is near 50, indicating a developing positive momentum.
Here are reasons why ETH may rise
According to a tweet posted by anonymous crypto analyst Mustache on October 11th, Ethereum could be one of the biggest bull markets in the history of the cryptocurrency sector if the historical patterns from 2016-2017 are any indication.
The analyst stated in his technical analysis that the “pattern from ’16-’17 repeats almost identically” when comparing the price action of ETH during that time to that of 2021 and 2022.
Another sign of a potential price increase for Ethereum is the falling supply of the currency, which lost nearly 4,000 ETH in just two days. The value of tokens to the wider public generally increases as there are fewer tokens in circulation.
Moreover, the seven-day moving average (MA) of the number of new Ethereum addresses recently reached a 10-month high of 5,044.161.
Additionally, when new money began to enter the market, Ethereum’s open interest on Binance, the biggest cryptocurrency exchange, increased by 10% to its all-time high of 1.3 million ETH.
Despite a drop in its social activity following the merge, Ethereum added 135,780 new ETH addresses to its network on October 8th – the largest number seen since December 7, 2021.
