ETH/USD: Ethereum price rallies as Adam Cochran unleashes another report

Ethereum ETHUSD
Ethereum ETHUSD

Ethereum price continued its unhinged rally days after it crossed the $200 resistance level. The price is now above $210 and the rally seems like it will continue.

Ethereum rallies after Adam Cochran research

As I wrote earlier this week, Ethereum price is rising mostly because of optimism in the cryptocurrencies market as Bitcoin halving nears. In fact, bitcoin price rose by more than 7% and crossed the important $8,000 resistance level.

I also wrote that ETH/USD is rallying because of the upcoming upgrade of ETH 2.0 protocol. Finally, I mentioned that the current period of low interest rates and open-ended quantitative easing was playing a role. As I have shared a while ago, wealthy people are sitting on more than $4.7 trillion in cash and money market funds. I believe that some of this money will be deployed in crypto.

Today, Adam Cochran, the respected Ethereum expert and Chief Technology at DuckDuckGo released a long report that could be contributing to the rally. He conducted a research of 10,000 ETH addresses with the goal of learning about market manipulation, profitability, and liquidity.

In his study, he found out that 17% of all Ethereum was held by just 10 accounts. The top 10,000 ETH addresses held about 9.17 million ETH while the top ten hold about 16.6 million ETH. At first, this would appear to be bearish for ETH since a small amount of people have too much power. However, when you narrow down, he found that the top 10,000 addresses hold about 56.77% of ETH. On the other hand, the top 10,000 addresses hold about 57% of BTC.

He also moved to the ETH 2.0 idea. He found that this protocol would initially have a return of between 12% and 17%. Also, he found that 64.53 of ETH was very active in the market unlike other cryptocurrencies. His findings could be the reason why Ethereum price roared today. You can read more about his report below.

Download our Q2 Market Global Market Outlook

ETH/USD technical outlook

On the daily chart, we see that the ETH/USD is inches below the 61.8% Fibonacci retracement level at 213.76. We also see that the bulls are in total control as the price is way above the 50-day and 100-day exponential moving average. Therefore, I expect the rally to continue in the medium-term but I am also cautious because the pair could find some resistance when it reaches the 61.8% retracement level. As shown below, the price has always found resistance whenever it reaches a key retracement level.

Don’t miss a beat! Follow us on Telegram and Twitter.

More content