The possibility of Ethereum (ETH) rising to Monday's high againAt present, it is unclear whether the bullish belief in the short term is enough to drive a 3% rebound. # Ethereum, etc#The supply of Ethereum (ETH) has increased, reaching its highest level in the past ten months
The possibility of Ethereum (ETH) rising to Monday's high again
At present, it is unclear whether the bullish belief in the short term is enough to drive a 3% rebound. # Ethereum, etc#
The supply of Ethereum (ETH) has increased, reaching its highest level in the past ten months. This increased supply may lead to a decrease in prices. In addition, the decrease in gas costs and the decrease in on chain activities may also bring greater selling pressure to Ethereum.
According to a report by AMBCrypto on October 13th, Ethereum has significant liquidity between $1595 and $1616. With the fluctuation of Bitcoin prices, this price range was briefly breached on Monday morning (October 16th). However, at a higher time frame, there are still resistance areas that require traders to consider their next trading plan.
Breaking through $1600 indicates that there may be more gasoline in the fuel tank available for bulls to use
On the one hour chart, Ethereum (ETH) shows strong bullish signs. Since October 13th, the market structure of ETH has remained bullish, with prices climbing to over $1555. The previous resistance zone was between $1585 and $1600, but now it has become a support zone. The relative strength index (RSI) is higher than the neutral level of 50, indicating that buyers dominate.
However, the cumulative distribution line (OBV) has shown a stable downward trend over the past week, which is a frustrating development for buyers. This reflects the downward trend of ETH over a longer period of time. The daily chart and 12 hour chart show the dominant position of the bearish market. This price range (orange part) is the trading range of ETH since the end of August. In addition, the range of $1630 to $1750 is the resistance zone since mid June.
Therefore, buyers can consider establishing a long position in the $1585-1600 area, with a target of $1640 in the middle area. Setting a strict stop loss between $1566 and $1573 is a wise move, as this transaction may involve greater risk.
The significant decline in OI means that speculators' confidence is severely shaken
Due to Cointelgraph's inaccurate tweet about Blackrock Bitcoin ETFs, the market experienced significant volatility during Monday's New York session, and they subsequently apologized for this. After a brief surge in ETH to $1640, the subsequent sell-off led to a sharp decline in open interest contracts (OI).
Although bullish speculators entered the market and saw a slight rebound after the open interest index fell, this did not demonstrate a firm bullish belief. However, the cumulative trading volume increment (CVD) of spot trading has continued to rise in the past 12 hours, which is a positive sign. This supports the view that ETH may rise to $1640 or higher, and then face some challenges at high time resistance levels above $1660.
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