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Breaking This Barrier May Help Ethereum Hit $2,400

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ethereum price analysis
  • ETH must break through the $2,050 barrier to intensify the climb to $2,400.
  • The rapid surge in addresses holding at least 1,000 ETH suggests the return of whales.
  • Ether may retest $1,930 and $1,700 as support if a breakout to $2,400 continues difficult.

The price of Ethereum’s native currency, ETH, seemed to be stuck in a wide range, even as bulls tried harder to call for a long-term trend reversal. Recently, the area around $1,700 was shown to have strong support and could be the smart-contracts token’s floor price. Trading around $2,000 didn’t seem to be enough, and a real break past the range limit resistance at $2,050 was needed for more gains to $2,400.

The potential for recovery is on the verge of experiencing a boom.

After getting hit hard in May, investors in Ethereum seemed to have calmed down. Glassnode says that the number of addresses with at least 1,000 ETH coins has jumped sharply from 6,174 to 6,236 since the last drop.

The chart below showed that this was one of the biggest jumps, given that the metric has been going down since it reached its all-time high of 6,423 in September. If investor interest keeps going up, Ether is likely to go up in the next few days or weeks. Note that this makes more people want ETH, which drives the price up in a way that can’t be stopped.

Ethereum Addresses with ≥ 1,000 ETH Tokens

Glassnode Chart

ETH was bought and sold for $1,970 at the time this was written. At $2,050, there has been rising pressure on the price, which may have been caused by investors taking early profits. On the four-hour chart, the 100 Simple Moving Average (SMA) was just below the current market price and ready to offer support right away.

If things got really bad and ETH kept getting pushed down, another support at $1,930 might help. A falling trend line and the 50 SMA also protect ETH from falling further.

Still, the expected uptrend might not be easy to reach because the 200 SMA could be slow in the same time frame. Traders should also take into account the fact that the Relative Strength Index (RSI) has moved away from the “overbought” area. A negative divergence coming up could also make the price of Ethereum very bearish in the coming sessions.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.