- An ETH offer barrier of 5.58 million ETH almost $ 1,860 could start a sale and dropping pressure from the momentum.
- Retirement of whales and long -term positioning increase the risks of liquidation during the attempt to escape the resistance of Ethereum.
Ethereum (ETH) approached a key resistance area, chain data revealing nearly 4.54 million portfolios with 5.58 million ETH between $ 1,850 and $ 1,880.
This cluster represent A major obstacle, because many of these holders can seek to get out of the profitability threshold, creating high sales pressure.
In addition to that, the level has a psychological weight, especially after recent gains. At the time of the press, ETH exchanged $ 1,914.85, up 4.44% in 24 hours.
Increasing reserves and long positions indicate the risk of growing volatility
The measures related to exchanges increase caution despite the recent increase in prices.
The total exchange reserve increased by 4.32%, reporting that more ETH is transferred to trade.
As a rule, growing reserves suggest that investors are positioning themselves for a potential sale, in particular as a resistance to prices. While starters with derived platforms could involve coverage, this increase during a price ascent often indicates for profit.
As such, the market may encounter greater volatility if the trend continues alongside the demand for the decline of the purchase.
Source: cryptocurrency
Long bias is built, but the risks follow
The derivative market has shown an aggressive long positioning that can feed the ETH rally. Open interest has crowded 10.07%, reaching 13.1228 billion dollars, reflecting a wave of new positions.
In addition, the long / short ratio on the binance has shown that 59.5% of traders are long, while only 40.5% are short. Although this long domination reflects an optimistic conviction, it also introduces the risk of liquidation.
If Ethereum fails to break the resistance in a convincing manner, long leverages long and dropping the downward pressure through forced liquidations.
A large volume of transaction decreases as the whales reduce exposure
The behavior of chain whales does not confirm the bullish momentum.
A large volume of transaction fell by 5.44%, displaying a lower signal. In fact, such drops often suggest outings of hesitation or strategies by major holders.
As a general rule, an increase in the significant transaction activity precedes or supports major eruptions, but the current drop can reflect caution due to the proximity of Ethereum with a well -defined sales area.
Consequently, the limited support of whales weakens confidence in the sustainability of the rally.
Source: intotheblock
Ethereum confirms a bullish reversal with a reversed head and shoulders
Despite cautious signals on the chain, the prices structure of Ethereum seems technically optimistic.
A clean break above a long-term descending trend line occurred in parallel with the formation of an inverted head and shoulder pattern.
This conventional bullish reverse configuration suggests the potential of a sustained rise trend if the price is above the neck.
In addition, the parabolic SAR turned upside down, strengthening the momentum upwards. As long as ETH holds above the neckline, a continuation remains likely.
Source: tradingView
Can Ethereum exceed $ 1,860 and maintain its rally?
The current momentum of Ethereum is supported by solid technical models and the enthusiasm of retail.
However, chain metrics reveal substantial resistance and cautious behavior of whales, associated with high exchange reserves and an aggressive long positioning.
If the ETH successfully continues the resistance area of $ 1,860, it can trigger a new step. Otherwise, not doing it could lead to volatility peaks and a net retirement.
