Due to the concentration of buying at $1960, there has been resistance in the region. In order for ETH to overcome this obstacle, some changes need to be made
Due to the concentration of buying at $1960, there has been resistance in the region. In order for ETH to overcome this obstacle, some changes need to be made. Here are some.
- Overcoming the resistance level of $1960 may lead to prices soaring above $2000.
- The OBV reflects higher trading volume, which may trigger an increase.
For Ethereum [ETH], the price has increased by 10.24% in the past 7 days, which is impressive. However, with ETH falling to $1780 in the past 24 hours, the double-digit increase has stalled. Despite the decline, the broader market is still optimistic that tokens will soon rise to $2000.
ETH needs to break barriers
Analyst Ali Martinez stated that ETH needs to overcome the huge supply of $1960 to break through. Martinez pointed out that breaking the wall at the above price is important because there are many coins purchased at that price.
The analyst pointed out that 1.14 million addresses accumulated approximately 33 million ETHs, priced at $1960. Due to the concentration of buying at this time, ETH has formed resistance there.
If more trading activities exceed the trading volume at the above price level, ETH may rise to $2000. Otherwise, significant adjustments may occur, possibly below $1700.
In addition, although ETH has recently relatively followed the price trend of Bitcoin, it may require Bitcoin's dominant position to reduce. As of press release, Bitcoin's dominant position is 52.43%. This means that Bitcoin has a higher market value compared to Ethereum and other counterfeit coins in the market.
Token fluctuations leading to an increase in open positions
Open position contracts are an indicator of ETH's price potential in the coming days. In terms of price trends, high holdings can provide strength. On the other hand, a decrease in holdings indicates a weak price trend
As of the writing of this article, ETH's outstanding contracts are $6 billion. The decrease in prices and the increase in open contracts mean that the value of tokens may continue to decline. However, if open positions continue to increase when ETH starts to rise, then the counterfeit currency may break through resistance and rise above $2000.
As of the time of writing, the bullish structure of ETH still exists. However, the Ethereum/USD daily time frame shows that despite significant volatility, cryptocurrencies have overbought. This assertion is obtained from the Bollinger Line (BB).
The upper track of the BB line hit ETH1805 US dollars, triggering a price reversal. Based on the current situation, ETH may still fall below $1786. But the sharp fluctuations displayed by BB indicate that prices may experience significant fluctuations in the short term.
Therefore, as long as the purchasing pressure still exists, the possibility of rising to $2000 should not be ruled out. The balanced value (OBV) also enhances this possibility.
As of press release, the OBV has risen to 24.33 million. This reflects positive trading volume and may indicate a subsequent price increase.
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