Ethereum Conquers $2,100: On-Chain Data Paints Path To $2,400
24 Novembro 2023 - 5:00PM
NEWSBTC
Ethereum has cleared the $2,100 level during the past day, and if
on-chain data is anything to go by, a rally to new yearly highs
should be “easy.” Ethereum Has No Major On-Chain Resistance At
Higher Levels An analyst in a post on X explained that Ethereum has
overcome a major on-chain resistance zone with its recent price
rally. The on-chain resistance and support levels are defined based
on the density of investors who bought at them. The reason behind
this lies in how investor psychology tends to work. For any
investor, their cost basis is an important level, so whenever the
price retests, they pay special attention and might be tempted to
make some kind of move. Related Reading: Is Dogecoin About To
Reverse? Key Factors To Watch A holder who had been at a loss
before the retest might lean towards selling, as they may fear the
cryptocurrency would dip below it again, so exiting at the
break-even would at least mean they would avoid losses. Similarly,
an investor might decide to accumulate more if they had been in
profits earlier, as they would see this same level as a profitable
point of entry into the asset. Now, here is a chart that shows how
the Ethereum price ranges around the current price are looking in
terms of the density of investors who share their cost basis there:
Looks like the levels above don't host the cost basis of that many
investors | Source: @ali_charts on X As displayed in the above
graph, the Ethereum price range between $1,982 and $2,044 hosts the
cost basis of about 1.67 million addresses, which acquired 38.73
million ETH at these levels. Naturally, the more investors that
share their cost basis inside a specific range, the stronger the
reaction that the price would feel when it retests due to the
aforementioned buying/selling effects. Thus, this range that’s
thick with investors would be a significant zone for the
cryptocurrency. Since Ethereum has already surged past this area
and has gained some distance over it with its latest break, the
range is likely to play the role of support now. Related Reading:
Will Recent Binance Events Trigger This Historical Bitcoin Bull Run
Signal? Ethereum has this strong support area under its belt, while
at the same time, there are no major resistance zones immediately
above, as is apparent from the chart. This ideal setup means that,
in theory, ETH shouldn’t have much trouble rallying towards the
$2,426 level. Another analyst has also pointed out how Ethereum has
observed negative exchange netflows since the start of the month.
The exchange netflow here is an indicator that keeps track of the
net amount of ETH exiting or entering the wallets of all
centralized exchanges. The indicator's value has been negative
recently | Source: @C__thumbs on X The net outflows have amounted
to over $1 billion during this period, a potential sign that
significant buying has been occurring in the space. This certainly
fuels the idea that ETH could explore new yearly highs shortly. ETH
Price At the time of writing, Ethereum is trading at around $2,100,
up 9% in the past week. ETH has been climbing in the last few days
| Source: ETHUSD on TradingView Featured image from Bastian
Riccardi on Unsplash.com, charts from TradingView.com,
IntoTheBlock.com
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