- Ethereum price is stuck between two crucial levels as it failed to break out of the ascending parallel channel.
- ETH bulls could emerge victorious as IOMAP shows a massive cluster of investors ranging from $1,700 to $1,600.
- Increasing whale activity suggests that a retest of the channel could be possible.
Ethereum price rallied approximately 15% between February 8 and 10. However, a failure to close above the ascending parallel channel has resulted in a pullback into the consolidation pattern.
Ethereum price prepares to resume the bull rally
Ethereum price suffered a 6.5% drop on Tuesday’s session, which temporarily paused its upward momentum. Now, ETH trades between two crucial levels, ranging from $1,760 and $1,700. A close above the $1,760 level could cause FOMO among retail investors, which indicates an end to the consolidation channel. Hence, the resulting buying pressure could propel the coin by 10% to $2,050.
ETH/USDT 12-hour chart
Adding credence to the bullish scenario is IntoTheBlock’s In/Out of the Money Around Price model. This on-chain metric shows that the support for ETH ranges between $1,700 to $1,600, where roughly 800,000 addresses have purchased a whopping 13 million ETH. However, the resistance at $1,760 has about 195 addresses holding only 1.5 million ETH.
Consequently, a bounce from this support range seems inevitable.
Ethereum IOMAP chart
Adding credence to this bullish outlook is Santiment’s holders distribution chart, which shows a steady increase of 2.6% in the number of whales holding between 100,000 to 1 million ETH from February 6 to 11. Whales holding 1 million to 10 million ETH has risen from 8 to 9, a 12.5% increase, suggesting that whales are confident in Ethereum’s upswing potential.
Ethereum Holders Distribution chart
On the flip side, a sudden market crash pushing the price below $1,600 could prove fatal to the smart contracts token. This could put many investors underwater, triggering a cascading sell-off that could push ETH as low as $1,500.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.