Ethereum At $2,100: Why Path To $2,500 Is Now All Clear
10 November 2023 - 3:00PM
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On-chain data suggests the path to $2,500 could be open for
Ethereum now that the asset has managed to cross the $2,100 mark.
Ethereum Has No Major Resistance Levels Until $2,500 In a new post
on X, the market intelligence platform IntoTheBlock has provided an
update on how the Ethereum levels are looking in terms of on-chain
support and resistance. In on-chain analysis, ranges are defined as
support or resistance based on how many investors acquired their
coins inside them. The below chart shows the density of addresses
at various levels above and below the current spot price of the
cryptocurrency: The amount of holders that acquired their coins at
each of the different ETH price ranges | Source: IntoTheBlock on X
Generally, whenever the Ethereum price retests the cost basis of an
investor, they may be more likely to show some kind of move. When
this retest happens from above, the holder may be inclined to
believe the price will go up again soon so they may see the retest
as a “dip” and thus, might decide to buy more. Related Reading:
Polygon (MATIC) Jumps Another 6% As Whales Show High Activity On
the other hand, the investor may want to exit the market if the
retest is from below, as they might fear the price would go down
again in the future, and by selling at the break-even mark, they
would at least avoid incurring any losses. A few investors showing
such behavior is obviously not enough to cause any visible effects
on the market, but if a large number of investors share the same
cost basis, the asset could very well feel a sizeable reaction.
From the chart, it’s visible that there are some large cost basis
centers below the current Ethereum levels, suggesting the presence
of strong potential support ranges. Earlier, when the asset had
still been below $2,000, the $2,000 to $2,100 range posed as the
last major resistance boundary to break. Since the coin has now
risen above these prices, it’s possible that the range would be
switching its role towards being support instead. Following this
latest rally, about 75% of the holders are now in profit (that is,
their cost basis is in the levels below). As is visible in the
graph, there are no price ranges with a high density of investors
in the upcoming price levels, until the $2,500 mark. “Does this
mean it’s a clean run to a new ATH? Not necessarily,” explains
IntoTheBlock. “Historically, profit-taking at these levels is
common and leads to pullbacks. However, this is unlikely to
significantly impact Ethereum’s long-term trajectory.” Related
Reading: Bitcoin Bulls Gear Up: 200-Day SMA Rise And Historical
Trend Signal $50,000 Price Target Analyst Ali Martinez has also
pointed out something interesting in an X post today. He revealed
that the latest rally in ETH has occurred without the support of
the largest of the Ethereum whales (carrying a balance greater than
10,000 ETH), the so-called “mega whales.” Looks like the value of
the metric has been moving sideways recently | Source: @ali_charts
on X As highlighted in the graph, the total number of addresses
owned by the Ethereum mega whales has been flat recently. “Ethereum
has reclaimed the $2,000 threshold, and intriguingly, this is all
happening before whales have even started buying ETH!” notes Ali.
ETH Price After a surge of more than 9% in the past 24 hours,
Ethereum has arrived at the $2,100 level for the first time since
April. The asset's price appears to have exploded during the past
day | Source: ETHUSD on TradingView Featured image from DrawKit
Illustrations on Unsplash.com, charts from TradingView.com,
Glassnode.com, IntoTheBlock.com
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