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- Ethereum’s liquidation level increased after the price reached $2,170.
- Exchange holdings were growing, but derivatives indicators looked optimistic.
Ethereum (ETH) The price has once again gained bullish momentum with prices rising over the past 24 hours.
However, not long ago the token fell into a critical demand zone. When ETH fell to that level, did investors decide to sell their holdings, or did they get confident in ETH and expect the price to rise?
Ethereum has reached a critical demand area
Ali, a popular cryptocurrency analyst, posted a tweet on December 13th highlighting an interesting development.
According to the tweet, ETH It has entered an important demand zone ranging from $1,934 to $2,160. Within that range, over 5.58 million addresses held nearly 40 million Ethereum.
#Ethereum It has entered an important demand zone ranging from $1,934 to $2,160. Here we have more than 5.58 million addresses with nearly 40 million addresses. $ETH.
From an on-chain perspective, this is #ETHThis is the most important level of support. For traders, this can be an ideal reload point. pic.twitter.com/Qh1P8lQMhk
— Ali (@ali_charts) December 13, 2023
Since ETH was in a critical demand zone, AMBCrypto looked at data from Hyblock Capital to see if there was a selloff near that mark.
Analysis shows that when the price of ETH reached $2,170, liquidation of tokens increased, as evidenced by the fluorescent line. However, soon after, the token price rebounded and rose.
Source: Hiblock Capital
Thanks to this, the price of ETH rose by more than 4% in the last 24 hours. At the time of this writing, ETH transaction Its market capitalization is $2,264.32, which is over $272 billion.
However, if ETH is to sustain its upward rally, it will need to break through several resistance levels. AMBCrypto’s analysis of the Ethereum liquidation heatmap shows that it needs to break above a critical resistance level around $2,300 in the near term.
If the ETH If it rises above that, ETH will face another significant hurdle: $2,450.
Selling pressure on ETH is increasing.
However, considering supply distribution, the chances of ETH sustaining its bull rally seemed slim.
According to CryptoQuant’s analysis: dataEthereum’s exchange reserves were increasing, which meant selling pressure was high.
aSORP is also colored red, clearly indicating that more investors are selling at a profit. During a bull market, this may represent a market high.
Source: CryptoQuant
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Nonetheless, Ethereum’s derivatives indicators looked optimistic as the taker buy/sell ratio remained in the green. Additionally, ETH’s funding rate also remained in the green while its price rose.
This means futures investors are buying. ETH On the other hand, prices have risen, which can be interpreted as a bullish signal.
Source: CryptoQuant