Despite a recent price decline, Ethereum (ETH) bulls appear to be setting their sight on a renewed rally, according to data obtained by BeInCrypto on-chain. Today, ETH’s price is $3,130 — down from its recent peak of $3,434 on November 12.

Investors, however, remain resolute that the cryptocurrency pullback is temporary. Here is a breakdown of what could happen amid the current sentiment.

Ethereum Investors Decide Not to Sell

According to Glassnode, the total Ethereum exchange inflow is 249,245 as of this writing. Exchange inflow is the number of coins sent to exchanges within a given timeframe. When this metric increases, it means that more holders are willing to sell, which could be bearish for the cryptocurrency.

On the other hand, a decrease in the exchange inflow indicates that investors are removing their holdings from exchanges. For ETH, the current figure, valued at approximately $780 million, is a decrease from the value on Friday, November 15.

Therefore, this suggests that most ETH holders are refraining from selling. If this continues, the cryptocurrency might not experience a decline below $3,000 in the short term.

Data from IntoTheBlock reveals that ETH bulls are actively working to sustain the price. This is evident from the Bulls and Bears indicator, which tracks whether addresses trading at least 1% of a cryptocurrency’s volume are predominantly buying or selling.

When the indicator shows more bulls, it signals that participants are primarily buying. Conversely, a higher number of bears indicates increased selling activity. 

Over the past 24 hours, Ethereum bulls have outnumbered bears, suggesting ETH’s price could surpass $3,130 in the short term.

ETH Price Prediction: More Support for the Upside

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) supports the bias that ETH’s price could trade higher. The IOMAP indicator helps traders identify key price levels where significant buying or selling activity is likely based on user positions and profitability. 

It also highlights areas of support and resistance, depending on the volume at a price range. Typically, the larger the cluster of volume, the stronger the support or resistance.

In the image below, approximately 3 million addresses accumulated Ethereum at the $3,075 price level, collectively holding 3.56 million ETH. These addresses are “in the money,” indicating they are currently profitable based on the prevailing market price. 

This cluster suggests strong support at $3,075, as holders at this level may resist selling at almost every other level between $3,251 and $3,591. Considering this position, Ethereum’s price is likely to rally toward $3,600.

However, if selling pressure increases, this might not happen. In that scenario, ETH’s value could decrease below $3,000.

Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, has called on President-elect Donald Trump to appoint a blockchain advisor in his administration.

The suggestion comes as the newly created Department of Government Efficiency (DOGE) reportedly explores implementing a blockchain-based election system.

Kusama Explains Why Trump Should Hire a Blockchain Advisor

On November 15, Kusama shared concerns about the rumored blockchain election platform reportedly under review by Trump’s team. The rumored system, dubbed “eVote,” is said to involve partnerships with prominent blockchain platforms like Cardano, Hyperledger, Hedera, and X (formerly Twitter). It aims to create a nationwide electronic voting and identity verification solution.

The eVote initiative seeks to combat election fraud by requiring its adoption across all US states. Analysts believe this aligns with Trump’s long-standing emphasis on ensuring election integrity, particularly in light of controversies surrounding past electoral processes.

While the idea has gained traction, Kusama insists that its success depends on integrating Fully Homomorphic Encryption (FHE). This advanced encryption ensures voter data remains secure both on the blockchain and against external threats.

Kusama warned that without FHE, sensitive voter information, such as identities and preferences, could be exposed to decryption attempts by malicious actors. This vulnerability could lead to widespread disruption. He emphasized that encryption must be robust enough to resist quantum computing threats, ensuring both on-chain and off-chain security.

“Without FHE, this concept fails. Here is why. Votes to be protected, not just on chain… encrypted in a way that is quantum proof. Otherwise, bad actor country decodes the votes and publishes wallets & who voted for whom. Chaos ensues,” Kusama explained.

Due to this, the Shiba Inu developer called on Trump to appoint a dedicated blockchain advisor to tackle these challenges. Such an appointment could bridge the gap between technology and public policy.

Notably, industry leaders like Cardano’s founder, Charles Hoskinson, have shown interest in collaborating with government policymakers to develop regulatory clarity and foster blockchain innovation.

If Trump follows through, this move would align with his growing engagement with crypto-focused figures. Recently, he appointed crypto advocates Elon Musk and Vivek Ramaswamy to lead DOGE and nominated Florida Congressman Matt Gaetz, a Bitcoin supporter, as Attorney General. Additionally, Robert F. Kennedy Jr., known for his pro-Bitcoin stance, is set to become the Secretary of Health and Human Services.

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