Connect with us
Active Currencies 14355
Market Cap $2,752,572,006,539.30
Bitcoin Share 50.81%
24h Market Cap Change $8.36

How Ethereum conquered this roadblock after BlackRock’s ETF filing

2min Read

Crypto analyst Ali Martinez revealed that there was a supply wall between $1,972 and $2,030. After Ethereum did well to beat this obstruction, AMBCrypto took a careful look at the prices traders are targeting.

Share this article

  • ETH surpassed the supply wall between $1,972 and $2,030, rising as high as $2,127.
  • Traders are targeting an upward movement for ETH in the region of $2,153.

Ethereum’s [ETH] movement on the chart was one that attracted a lot of criticism due to its inability to match Bitcoin’s [BTC] uptrend over the last few weeks. But all that changed on the 9th of November as the coin price climbed above $2,000. 

Many attributed the surge in price to the BlackRock Ethereum ETF filing which the public got wind of the same day. This macroeconomic factor surely had an impact on the price increase. But a few hours after ETH hit $2,042, it retraced back to $2,004.

ETH breaks down the wall

In between ETH’s rise and fall, analyst Ali Martinez revealed that there was a supply wall between $1,972 and $2,030.

A supply wall is described as a price level where there is a significant accumulation of an asset, illustrating weaker selling pressure for the coin in question.

Martinez added that 651,000 addresses purchased millions of ETH at this price level, making it an important area to watch.

So, ETH’s rejection at $2,042 could be attributed to the factor mentioned above. Typically, to overcome this supply wall, there has to be much more volume than there was when the buying spree occurred. 

Interestingly, the Ethereum clan did well to beat the obstruction as the coin value rose above $2,100. At press time, ETH exchanged hands at $2,127, making the seven-day performance an 18.49% increase.

Sliding away from capitulation

According to Santiment, ETH’s funding rate was 0.028% at press time. The increase in the funding rate suggests high interest in long-leverage traders. The high value of the metric also suggests a bullish sentiment. 

Because of the unusual spike in the funding rate, AMBCrypto took a careful look at the prices traders are targeting.

On average, ETH’s short-term projected price was around $2,153. This bullish outlook was also confirmed by the weighted sentiment.

Ethereum weighted sentiment and funding rate

Source: Santiment

At the time of writing, Ethereum’s weighted sentiment was high up at 0.88. The stance of this metric indicates that comments about ETH were largely positive, and the negative ones did not come close to the share of optimism shown. 

Furthermore, the Short-Tern Holder Net Unrealized Profit/Loss (STH-NUPL) showed that ETH holders have moved away from the capitulation (red) phase. At press time, the metric was in the hope (orange) corner with solid signs of moving into optimism (yellow).

Is your portfolio green? Check the ETH Profit Calculator

The STH-NUPL assesses the behavior of short-term investors by taking into account only UTXOs younger than 155 days.

The result of the analysis mentioned above indicates the broader market believes that ETH’s uptick may have just started and there could be room for more.

Ethereum Short Term Holder NUPL

Source: Glassnode


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.