Analysis of a whale’s transactions in the past few hours showed that a large amount of ETH left the Binance exchange.
ETH has a bullish market structure on the daily chart. Resistance above $2000 combined with the liquidation levels heatmap findings showed that a reversal was possible.
Ethereum [ETH] has rallied strongly in the last three weeks and gained close to 25% in three weeks. The news that Hong Kong is considering allowing exchange-traded funds (ETFs) that invest directly in cryptocurrencies like ETH boosted investor sentiment.
Analysis of a whale’s transactions in the past few hours showed that a large amount of ETH left the Binance exchange. Was this a sign that smart whales continued to accumulate ETH?
$2000 Psychological Level Could Reject Bulls Once Again
On the one-day chart, the market structure and momentum were firmly bullish. The RSI was at 74 to reflect the same, and breakeven volume has been trending up since mid-October. This underlined the fact that the purchasing volume has been much higher than the sales volume in the last three weeks.
To the north, the next levels of interest were at $2,039 and $2,141, which marked the July and April highs respectively. A look at the one-week ETH price chart revealed that $1940-$2140 was a severe resistance zone and has been since May 2022.
Therefore, an immediate breakout beyond this zone was less likely to occur. of higher time frame resistance, which meant that ETH lower price holders could lock in their profits and wait for the next move.
Vast Liquidity Pool at $2,070 Was an Attractive Bullish Target
The Hyblock liquidation levels heat map highlighted two areas that could be critical for long-term investors. The first was the $2070 mark which coincided with a resistance zone from the previous technical analysis. A move just above $2070 to liquidate these positions could be followed by a reversal.
The next major accumulation of liquidations occurred below the lows established in recent months at $1,485. Therefore, a revisit to the $1,500 area would probably be a juicy buying opportunity.
The coin’s average age of 180 days continued an uptrend as ETH prices rose. This showed that holders have not yet started selling their ETH en masse. The idle circulation metric also did not see a notable increase in recent days, reinforcing this idea.
On the other hand, the MVRV ratio rose to highs not seen since July, meaning that profit-taking activity could soon kick in and initiate a reversal. For that reason, ETH bulls can lock in their profits and wait for the market to show where it is headed next.
What’s Next for the ETH Price?
In the past few hours, Ether attempted to break through the immediate resistance level of $1,900 due to bullish efforts, only to be rejected by the bearish resistance, showing significant sell-offs at higher prices. Currently, the ETH price is trading at $1,896, declining over 0.3% in the last 24 hours.
The next move for the bears would be to try to push the price down towards the solid support mark of $1,860. If the price recovers from this level, ETH price may break above the upper trend line. In such scenario the price could be consolidating around $1,983-$2,024.
On the contrary, if the bulls fail to defend the $1,860 level, the ETH price could drop sharply. Thus, the price of ETH could hover around $1,747 for a while. If sellers continue to dominate, ETH price could witness another decline, stabilizing around $1,670.
By Audy Castaneda
