Could the path to a breakthrough for Ethereum (ETH) be obstructed by a formidable supply wall? This is the question posed by cryptocurrency trader and analyst, Ali, who has shed light on the hurdles faced by the popular altcoin. According to his analysis, a significant supply wall at the $1,960 mark is thwarting ETH’s chances of a significant price leap.
ETH’s Trading Performance
At the time of writing, ETH had experienced a 3.15% decline in price over the last 24 hours, with the altcoin exchanging hands at $1,788.47. Despite this slight dip, the weekly performance of ETH remains strong, boasting an impressive 12.62% increase.
The Supply Wall Hurdle
Ali’s analysis, based on data from @intotheblock, reveals a massive supply wall of approximately 33 million ETH at the $1,960 price point. This significant resistance level is likely the result of nearly 1.14 million addresses purchasing ETH at this price. The presence of such a supply wall could potentially hinder ETH’s breakout chances in the near term.
Technical Indicators and Future Projections
From a technical standpoint, ETH has been oscillating between $1,755 and $1,860 over recent days. However, several indicators suggest a potential shift in this pattern. The daily Relative Strength Index (RSI) is tilted towards the oversold territory, indicating a possible loss of buying momentum. If the RSI line crosses below the RSI Simple Moving Average (SMA) line, this could signal a shift in favor of sellers.
Further supporting a potential bearish outlook is the daily Moving Average Convergence Divergence (MACD) indicator. Despite a positive divergence from the MACD Signal line, the MACD Histogram’s gradient has turned negative, potentially foreshadowing a short-term bearish reversal for ETH.
If these bearish signals prove accurate, ETH’s price could plummet to around $1,645 in the coming days. Conversely, if ETH manages to maintain a position above $1,755 over the next 48 hours, this bearish outlook could be invalidated, potentially paving the way for a price surge to as high as $2,035.
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Please note: The information provided in this article is purely for educational purposes and should not be construed as financial advice. Always exercise caution and do your own research before making any investment decisions.
