The second-largest cryptocurrency could be on the cusp of a major price movement.
- Ethereum has developed a descending triangle on its four-hour chart.
- If the $1,720 support level continues to hold, Ethereum could appreciate by as much as 25%.
- Conversely, if Ethereum breaks its support, a downswing to $1,300 looks likely.
Ethereum remains stagnant in a no-trade zone that is getting narrower over time. Patience is advised until ETH can break out of this tight price pocket.
Ethereum at a Crossroads
Traders appear to be growing impatient as Ethereum continues to consolidate within a tight price range.
Data from Coinglass has revealed that roughly $1.5 billion worth of long and short ETH positions have been liquidated across the board over the past three weeks. In the meantime, Ethereum has been locked in a no-trade zone that is getting narrower over time. The token’s price action has defined two critical price points that will likely determine where prices are heading next.
Ethereum has developed a descending triangle on its four-hour chart. This technical formation prevails that a break below the X-axis or above the hypotenuse could result in a 25% price movement in either direction. A sustained close below $1,700 or above $1,900 will likely resolve the ambiguity that ETH currently presents.
Dipping below support could result in a downsizing toward $1,300, while overcoming resistance might encourage sidelined investors to re-enter the market and push Ethereum up to $2,270.
Despite the ambiguous technical outlook, on-chain data shows that many large Ethereum whales are exiting their positions, indicating fears of a further decline.
Data from Glassnode reveals that the number of addresses with a balance greater than 10,000 ETH has declined by 1.51% in the past three weeks. Roughly 18 whales have either left the network or redistributed their holdings. Although this sum may seem insignificant at first glance, it is worth noting that each of these addresses held at least $20 million worth of ETH.
This rise in selling pressure from whales could be tampering with Ethereum’s ability to rebound. Still, a decisive four-hour candlestick close outside of the $1,700-$1,900 no-trade zone could help determine which direction ETH will move over the coming weeks.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Fidelity to Offer Ethereum Trading and Custody
Fidelity is also planning to expand its team of blockchain specialists. Long-Term Indicators Fidelity is planning to offer services for the custody and trading of Ethereum and other cryptocurrencies, according…
Harbour Offers Institutional Liquid Staking on Ethereum
Two notable blockchain firms have announced the launch of Harbour, a liquid staking protocol for the Ethereum blockchain. Harbour Is Now Live on Mainnet Blockdaemon and StakeWise launched Harbour’s mainnet…
Ethereum’s Bleed Against Bitcoin Dashes “Flippening”…
Ethereum is having a hard time recovering from the recent market slump. Ethereum Slides Against Bitcoin Ethereum is lagging behind Bitcoin. The second-largest cryptocurrency by market cap is showing weakness…