Ethereum (ETH) Technical Analysis and Upcoming Level
After consolidating for a week, Ethereum (ETH) is showing signs of massive upside momentum. The world’s second-largest cryptocurrency by market cap has been trading in a tight range between $1,840 and $1,955 for the past week. However, with the recent surge in prices across the crypto market, ETH has now reached the upper boundary of this range and is on the verge of a breakout.
Technical analysis suggests that if ETH breaches and closes a daily candle above the $1,960 level, there is a strong possibility it could soar by 11% to reach $2,200 in the coming days. Despite trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend, the recent price action and historical momentum point towards a potential upside for ETH.
Bullish On-Chain Metrics
Intraday traders are showing a bullish outlook on ETH, with strong bets on the long side, according to on-chain analytics firm Coinglass. Data reveals that traders have built $480 million worth of long positions at $1,880 and $140 million worth of short positions at $1,970, signaling a positive sentiment among traders.
Investors and long-term holders are also accumulating ETH and taking advantage of the recent price drop. On-chain analytics firm CoinGlass reports nearly $50 million worth of ETH outflows from exchanges in the past 48 hours, indicating potential accumulation and presenting a “buy the dip” opportunity.
Current Price Momentum
ETH is currently trading near $1,950 and has seen a 5% upside momentum in the past 24 hours. The asset has also experienced a 30% jump in trading volume, reflecting significant participation from traders and investors. With the possibility of a breakout above $1,960, Ethereum is poised for a potential rally towards $2,200 in the coming days.
Overall, the technical analysis and on-chain metrics suggest a bullish outlook for Ethereum, with the potential for significant upside momentum in the near future. Traders and investors are closely monitoring the price action of ETH as it approaches a key resistance level, anticipating a breakout and a potential rally to higher price levels.