Ethereum Needs to Breach This Supply Wall For Further Rally

The world’s second-largest cryptocurrency Ethereum (ETH) has been flirting around $1,850 levels after some gains last week. The ETH price along with Bitcoin and other altcoins has remained steady over the last two days with investors eyeing the next upswing.

However, for the Ether (ETH) price to rally forward, it must first break through a supply wall just above $2,000. Citing data from IntoTheBlock, popular crypto analyst Ali Martinez reported:

“The most significant supply wall ahead of #Ethereum is in the range of $2,000 and $2,060, where 832,640 addresses bought over 26 million $ETH. If #ETH can break through this resistance barrier, we can expect an upswing to $2,330 or even $2,750″.

Ethereum Non-Exchange Addresses Accumulate

As we can see the Ethereum (ETH) price volatility has been strong around $1,900 levels with the bulls and bears engaged in an intensified battle. On the other hand, ETH supply on the exchanges has been dropping while non-exchange addresses continue to accumulate hard. On-chain data provider Santiment reports:

Ethereum is volatile today as #bulls and #bears battle around $1,900. The largest non-exchange addresses, in the meantime, continue getting richer while the top exchange addresses are near genesis levels. $ETH supply on exchanges is down to 9.2%.

While the Ethereum (ETH) price has been heading lower currently, this could be a golden opportunity to buy the dips at this point, as per the technical setup.

On Monday, June 26, crypto journalist WuBlockchain reported: “The largest short seller on GMX used 6.6x leverage to short ETH at the entry price of $1,703.97, and has lost nearly 70% of more than $1.2 million. When the price of ETH reaches $1,945.18, its short position of about $12 million in ETH will face liquidation”.

Some big investors have made a $12 million bet that the price of ETH will go down. They believe there are opportunities to make a profit if the price drops. However, if the market goes up instead, they could lose money.

AD

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.