Ethereum Breaches Resistance, Targeting Higher Highs

Ethereum Breaches Resistance, Targeting Higher Highs


Key Takeaways

Ethereum is up nearly 16% in the last five days. 
On-chain data shows a large number of tokens moving out of exchanges. 
Further buying pressure could push ETH to $3,300 or higher. 

Share this article

Ethereum could be ready to rise after overcoming a significant supply barrier. A spike in buying pressure could result in a major rally.

Ethereum Breaks Critical Resistance

Ethereum appears to be bound for significant price action as its on-chain activity turns bullish.

The second-largest cryptocurrency by market cap has risen by more than 15.7% over the last five days, gaining over 400 points in market value.

According to technical analyst Luke Martin, the upward price action allowed ETH to breach a critical trendline that had been preventing it from rallying since the beginning of the year. Further buying pressure could push Ethereum past the psychological $3,000 resistance level.

On-chain data from IntoTheBlock shows that Ethereum faces little to no resistance ahead. The most significant supply wall was at $2,860, where nearly 800,000 addresses have previously purchased 8.73 million ETH. Now that this hurdle has been turned into support, ETH could be ready to advance to $3,300 or higher.

Source: IntoTheBlock

Recent exchange outflows adds credence to the bullish outlook. 180,000 ETH was withdrawn from known cryptocurrency exchange wallets today. IntoTheBlock maintains that this is the largest outflow from centralized exchanges recorded in 2022. The last time such a high quantity of ETH was removed from exchanges was in October 2021. The price of ETH surged 15% soon after.

The ETH/BTC trading pair also appears to be primed for an upswing. It has been contained in an ascending parallel channel since May 2021, where each time it tests the lower boundary of this technical formation, it rises by more than 40% towards the upper trendline to the retrace again.

Ethereum Price Chart
Source: TradingView

Similar price action could see the ratio between Ethereum and Bitcoin surge to 0.078 or even 0.094. At a ratio of 0.079, Ethereum would be half the market cap of Bitcoin. The ratio would need to be 0.159 for Ethereum to “flip” Bitcoin like many crypto enthusiasts have predicted.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

OVR – the largest decentralized AR Metaverse

OVR is the decentralized infrastructure for the metaverse, merging physical and virtual world through Augmented Reality, creating a new dimension where everything is possible. It’s composed of 1.6 trillion unique hexagons…

Ethereum Gas Fees Are Cheap Again. Why?

Gas fees on Ethereum have reached lows not seen in over nine months. While decreasing network activity is the main reason for the decline, the number of unique active users…

Aave V3 Heads to Ethereum Layer 2, Fantom, Avalanche

Aave has launched its V3 update. The upgrade will initially be deployed on Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony with Ethereum to follow in the future.  Aave Unveils V3…

10M ETH Staked in Ethereum Consensus Layer Contract

The Ethereum consensus layer deposit contract has surpassed 10 million in ETH staked. This represents roughly 8% of the entire Ethereum supply.  Ethereum’s Roadmap Momentum surrounding Ethereum’s switch from Proof-of-Work…



Source link

Leave a Reply

Your email address will not be published.

© Copyright 2022 CryptoNewsDeals.com
You have not selected any currency to display