These three narratives may help fuel an intense Ethereum upswing

Published on by Cryptoslate | Published on

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Ethereum's price is finally starting to show some signs of life as the cryptocurrency recovers from its recent lows.

Its ongoing upswing has outpaced that seen by Bitcoin and most other digital assets, being bolstered by its ability to break back above the lower boundary of its long-held trading range.

One reliable on-chain indicator that has a track record of forecasting when the cryptocurrency forms mid-term tops and bottoms is now flashing, signaling that its recent lows of $220 could ultimately mark a long-term low for ETH. The imminent uptrend that this indicator is forecasting could be fueled by three key narratives that play into the favor of buyers.

Ethereum posts strong price movement as on-chain data points to further upside.

Yesterday, Ethereum's price saw a sharp, albeit fleeting, decline that sent it to lows of $222. This is the price at which buyers stepped up and reversed this downtrend.

The crypto is now trading well above these lows at its current price of $239 - marking an intense 6 percent rally from where it was trading at just 24 hours ago.

ETH's upswing may be driven partially by its ability to shatter the resistance that it had formed around $230. Buyers may now attempt to push the token up towards the upper boundary of its trading range around $250, although the heavy resistance in this price region may be insurmountable.

One on-chain indicator that weights Ethereum's daily active address count against the bullish divergences seen by its price seems to forecast further upside.

"ETH has shown a major Daily Active Address vs. Price bullish divergence since 6/23. This [Santiment] model calculates when DAA is above its expected average 2-yr levels at current prices. Neon green has been a consistently reliable local bottom signal."

There are currently three bullish narratives working in Ethereum's favor.