- 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.
#Ethereum is attempting to overcome an important supply wall between $1,972 and $2,030, where 651,000 addresses had previously purchased 33.5 million $ETH.
Notice that there is no other major supply wall ahead of #ETH until $2,500. pic.twitter.com/bcxUk7koCo
— Ali (@ali_charts) November 9, 2023
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.
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).
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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.
Source: Glassnode