- ETH witnessed a slight rise in selling pressure as most investors were “in money.”
- Technical indicators suggested a breakout above the $3.6k resistance.
Recently, Ethereum (ETH) reached approximately $3,600, thanks to a significant increase in its price over the week. This boost resulted in a large number of Ethereum wallets being in a profitable position. However, in the last 24 hours, there has been a slight retreat in its value. The question is whether this trend will continue or if Ethereum will rebound and potentially rise towards $3,900.
Ethereum faces correction
Previously, AMBCrypto stated that ETH reached its resistance level of around $3,600. If ETH were to convert this resistance into support, it could potentially aim for $3,900 next. But as we speak, the price is currently at $3,577.87 instead.
At the moment, it’s been found by IntoTheBlock’s data analysis that more than 90% of Ethereum investors are currently in a profitable position. Typically, when a significant number of investors find themselves in profit, there’s an increase in the desire to cash out, leading to heightened selling pressure and potentially causing prices to rise.
It appears that investors were offloading their Ethereum holdings based on the increase in its exchange supply, as suggested by Santiment’s data.
Nevertheless, it appears that whales are expressing trust in Ethereum, a fact suggested by the increase in Ethereum’s supply being held by large wallets.
Will ETH’s downtrend continue?
To determine if the confidence level of whales is strong enough to push ETH prices beyond $3.6k up to $3.9k, we examined various data sources. Last week, Ethereum’s open interest spiked significantly alongside an increase in its price.
The implication here seems to be that the recent adjustment could be temporary, suggesting Ethereum may simply be revisiting its resistance level again.
Furthermore, the funding rate stayed elevated, indicating a predominance of long positions. This trend implies optimistic market sentiment since traders were ready to incur additional costs to maintain their long positions.
Based on the indications from these metrics, it seems we might witness a surge in ETH’s price surpassing the $3.6k barrier. This potential rise could lead to increased volatility and enable Ethereum to reach approximately $3.9k in the near future. As previously stated, Ethereum has been persistently challenging its resistance at $3.6k, as suggested by its daily chart.
When I observe such a situation, it suggests to me that the likelihood of an uptrend or breakout is quite high. This notion is reinforced by the technical indicator known as the Moving Average Cross. Specifically, Ethereum’s 9-day moving average is maintaining a position notably above its 21-day moving average, which suggests a strong bullish sentiment in the market.
On top of that, while ETH tested its resistance, its On Balance Volume (OBV) remained high.
Read Ethereum [ETH] Price Prediction 2024-2025
A rise in OBV implies that there’s more trading activity on days when prices are rising, compared to days when prices are falling. This suggests a positive or ‘bullish’ trend in the market, as investors seem to be buying more during upward price movements.
Based on the signs mentioned earlier, if Ethereum (ETH) surpasses $3.6k, its path towards $3.9k could prove shrewd. Conversely, should ETH fail to reach that level, it may dip down to its support around $3.3k.
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2024-11-29 13:11