The price of Ethereum has been increased by a massive increase in buying pressure in the past few days.
The intensity of its upward trend has even been enough to drive up Bitcoin's price as well. The benchmark cryptocurrency surpassed its $ 10,000 resistance level yesterday, shortly after Ethereum was able to rise to $ 320.
The cryptocurrency has since stabilized around this price level as buyers try to get more support.
Analysts are now convinced that a further upward trend is imminent for ETH, as the technical strength created by the recent higher movement should not be underestimated.
On-chain data also indicate that Ethereum is approaching a make-or-break level. The reaction to the current price region could set the tone in which it will develop in the coming days and weeks.
The Ethereum shows signs of technical strength when analysts look up
At the time of writing, Ethereum is trading at just under 2% at its current price of $ 316. Here the crypto has been trading over the past day.
It is important to note that bulls are struggling to support them above the $ 320 region as they have had multiple micro-rejections at this level in the past few hours.
Whether buyers can destroy the existing resistance or not should reveal its short-term strength.
Analysts are finding that the cryptocurrency may be well positioned to see further upward moves as it recently rocked the top of a multi-month trading range.
A trader specifically refers to $ 365 as a short term goal. to explain that a $ 10,500 BTC break could trigger this next move.
“The ETH has now clearly exceeded the $ 318 range and achieved a return of 40% 7d. Last summer's $ 365 high is now in sight. I tossed the last two resistance pieces I can find on the chart, the 2019 high and another HOD at 334 and 343. Eyes on BTC for the 10.5 break. "
Image Courtesy of Jonny Moe. Chart via TradingView.
These on-chain data indicate that it is time for ETH
Analysis platform Glassnode explained In a recent post, Ethereum's “unrealized net gain / loss” is currently moving into the “optimism” zone.
The last time it hit this region, crypto has been subject to a sell-off. However, pressure above this level could mean that a major upward trend is emerging.
“Ethereum's unrealized net gain / loss is trying to get into the zone of optimism for the third time in the past 2 years. If the break continues and is bridged quickly into the faith zone, this could signal a longer period of ETH price increases. "
Image Courtesy of Glassnode.
How Ethereum will act in the coming hours is likely to have a significant impact on its macro trend.
Featured image from Unsplash. Charts from TradingView.