Wed. May 22nd, 2024
Ethereum technical analysis
  • Ethereum’s on-chain data suggests a potential rally.
  • Analysis by Ali indicates key support and resistance levels.
  • A thick range from $2,235 to $2,302 holds significant investor interest.

On-Chain Analysis: Navigating Ethereum’s Landscape

In a detailed post on X, analyst Ali delves into Ethereum’s current support and resistance dynamics, leveraging on-chain data. On-chain analysis relies on assessing levels where investors acquired their coins, offering insights into potential support and resistance.

Support and Resistance: The $2,235 to $2,302 Range

Ali’s analysis highlights a critical range from $2,235 to $2,302, where 1.84 million addresses acquired over 6 million ETH. Presently, Ethereum is trading just above this range, indicating profit for these investors. A retracement into this range might trigger further buying as holders view it as a favorable zone for potential profits.

Robust Support: $1,958 to $2,029 Range

In the event of a retest, a more robust support zone lies between $1,958 and $2,029, encompassing a cost basis of over 37 million ETH. Ali suggests this robust support could cushion potential corrections.

Clear Path Ahead: A Rally to $2,700 or Beyond

Notably, Ethereum appears to have no major demand wall above its current position, indicating a potential path for further growth. Ali notes, “The path ahead of ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond.”

Conclusion: A Promising Trajectory for Ethereum

The on-chain analysis provides a positive outlook for Ethereum, with key levels signaling potential support and a lack of major resistance barriers. As investors eye a potential rally to $2,700 or beyond, Ethereum seems poised for further growth in the current market landscape.

By Julia

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