Popular Analyst Expects Ethereum (ETH) Price To Move This Way

Ethereum (ETH) price jumps over 10% on Friday to hit a 24-hour high of $1,339. The reason behind the rally is the high ETH gas fees burned by XEN Crypto project, supported by a drop in the U.S. dollar index and other macros. Crypto analyst Rekt Capital predicts ETH flipping $1,450 into support is key for the next bullish momentum.

Ethereum (ETH) Price To Confirm Rally After $1450

Popular analyst Rekt Capital in a tweet on October 14 predicts flipping $1,450 into support will only confirm a bullish rally for Ethereum.

Ethereum witnessed a 10% rebound after the September CPI release, making a high of $1,339 from a low of $1,209. The rebound in the stock markets and Bitcoin price resulted in a recovery in the broader crypto market. The ETH price also jumped higher, with the price currently trading above $1,300.

Ethereum (ETH) Price At 1-Week Timeframe. Source: Rekt Capital

However, Rekt Capital believes Ethereum has moved straight into major resistance. It has been hovering under the resistance level for the past weeks. The ETH price will only turn bullish if it flips $1,450 into support. Until then, Ethereum is under pressure.

Currently, Ethereum holds above the $1,300 level despite the U.S. dollar index (DXY) again jumping over 113. The ETH price is most likely to move up or sideways as the possibility of another fall is low.

Meanwhile, Glassnode reports that the number of addresses holding at least 1 ETH has just reached an ATH of 1,592,964. Moreover, the number of addresses sending ETH to exchanges has reached a 21-month low of 1,228. It indicates the ETH price is most likely to rise higher and traders’ interest increases.

The Number of Address Holding 1 Ethereum (ETH). Source: Glassnode

Ethereum Turns Deflationary Amid High Gas Fee Burns

Ethereum is believed to turn deflationary as a result of the EIP-1559 burning mechanism, reducing the overall circulating supply. However, the ETH supply continued to increase after the Merge and turned deflationary on October 8, as per data. It happened due to high ETH gas fees burned by the XEN Crypto project.

Ethereum (ETH) Supply After Merge. Source: Ultrasound.money

In the last 7 days, XEN Crypto has burned 4,539.51 ETH, with 16,954 ETH burned in total. The Ethereum supply has decreased by over 6,000 ETH since the project becomes active on October 8.

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