Data areas are a big buy signal

According to several indicators analyzed on the chain, Ethereum (ETH) price may be on the verge of another increase despite the recent pump to $2,800.

ETH is currently trading at $2,771. If recent signs are accurate, the cryptocurrency's price could reach unprecedented levels after the successful spot ETF launches on July 23.

Ethereum offers a rare opportunity when the stock increases

Yesterday, during early Asian hours, ETH traded at $2,624. Following Fed Chairman Jerome Powell's comments indicating a stronger commitment to lower inflation and lower interest rates, altcoin prices rose. The increase in the price of ETH brings the total gain of the last seven days to 6.93%.

According to Messari Data, Ethereum's Adjusted Network Value to Transactions (NVT) ratio dropped to -53.05. The NVT ratio reflects that the market value of the network is growing faster than the volume of transactions. High NVT readings typically indicate that an asset is overvalued, often indicating periods of market highs and potential price declines.

Read more: Ethereum ETF explained: what it is and how it works

However, the massive decline in Ethereum's status shows that the network is undervalued, and ETH itself is at a discount. Therefore, it is not out of place to mention that the cryptocurrency is close to the bottom, and the possibility of a significant price increase in the coming weeks is high.

In addition, Ethereum is experiencing high turnover. Based on Glassnode's data, the exchange's net transaction volume on August 23 saw a significant drop to over 280,000 ETH.

This rate measures the difference between the coins entering the exchange and the coins leaving. A positive value indicates that more coins are being sent to exchanges – a sign of pressure selling.

Therefore, the recent spending of nearly $800 million confirms that buying pressure has increased. If it continues, this could prove a bias to buy ETH at current market prices.

ETH Price Prediction: Ready for Rally

According to the daily ETH/USD chart, Ethereum's failure to break below the $2,536 support level played a key role in the recent rally. If it were to fall below this level, ETH could fall to $2,345, which could create a speculative outlook.

Recent buying momentum, highlighted by the Moving Average Convergence Divergence (MACD) indicator, suggests that ETH price may reach $2,829.50 in the near term. MACD measures momentum, with positive readings indicating bullish sentiment and negative readings indicating bearish trends.

Additionally, the Fibonacci retracement indicator, which identifies key support and resistance levels based on historical price movements, provides additional insights. If ETH is above $2,829, the next potential target could be $3,265.60.

Read more: How to buy Ethereum (ETH) with a credit card: a step-by-step guide

Meanwhile, macro market analyst Matthew Hyland shares his thoughts on ETH's price action. In a video posted on X, Hyland mentioned that the cryptocurrency needs to close above $2,800 to increase the highs reached in July.

“If Ethereum can close above $2,800 on a weekly basis, it could see a major push towards the highs of $3,500 around $3,600,” the analyst explained.

However, ETH may reject this view of failure due to a recent decision by the Ethereum Foundation. Historically, selling a lot of ETH for a variety of reasons often results in a drop in price. Earlier today, on-chain data revealed that the foundation transferred 35,000 ETH to Kraken.

As in the past, the transfer may eventually lead to a sale. If it sends another round again, the price of ETH may be affected, and a decrease to $ 2,516.21 may be next.