U.Today - In a new tweet, crypto analyst tells traders to keep a watch on the Ethereum price, which is now hovering above a critical demand zone.
A loss of this critical zone with a lower range of around $1,530 could result in a strong correction for, the magnitude of which is unknown.
On Oct. 8, Ethereum plummeted to a low of $1,548 as the market resorted to profit-taking. Ethereum has been unable to recoup its previous-day losses and is currently in the red. ETH was down 0.54% in the last 24 hours to $1,583 at the time of writing.
According to IntoTheBlock data, Ethereum is currently hovering above a demand zone with a lower support level of $1,533. This is where 2.39 million ETH were bought by 1.83 million Ethereum addresses.
A loss of this support might trigger a decline near $1,485, where, unfortunately, has little support even to $1,342.
On the upside, Ethereum faces huge resistance, slightly above where it trades at the moment. This is because 4.38 million addresses purchased 10.92 million ETH from $1,585 to $1,633, at an average price of $1,610.
Derivative data suggests market lacks direction
Blockchain and derivative data paint a less-than-rosy picture of the second-largest cryptocurrency by market value.Crypto research firm said in a new tweet that ETH's open interest has increased since the start of September. Also, funding rates have remained neutral to negative, indicating a lack of direction on the market.
In another , Ali mentioned that Ethereum whales have been offloading their holdings. He claims that since February 2023, Ethereum whales have profited from rising prices, selling or transferring around 5 million ETH worth approximately $8.5 billion. This selling trend is continuing, and there is no present hint of a shift toward ETH accumulation.