- In less than 4 weeks, ETH bulls crossed $1800 and reached the $2000 level thanks to the Shanghai update.
- Low leverage cushions the current rally, reducing the risk of a prolonged downside.
ETH bulls have finally gained enough momentum to break their 6-month low. Meanwhile, the Ethereal The network has just confirmed the official release date. shanghai state Which will happen in three weeks.
Will another four weeks be enough for ETH to break above the $2,000 resistance?
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Just a week ago, it looked like ETH was falling off a cliff. Fast forward to the present and it is now up 32% from last week’s low.
He attributes this jump to bank contagion that occurred last week. As a result, investors became more fearful of a widespread banking collapse, so FUD favored cryptocurrencies.
ETH tries to break out of the lower range
remember, The reverse of ETH It was enough to move above the resistance level of the last 6 months in the $1700 price range. Its real value also hit a 3-month high according to the latest data from Glassnode.
📈 #etherium $ETH The actual price reached a 3-month high of $1,384.12
View metrics: pic.twitter.com/FfPG47wAcs
— Glassnode Alerts (@glassnodealerts) March 18, 2023
The cryptocurrency is currently at a 6-month high and the bulls continue to advance. However, it is quickly becoming an overbought position where we could see some selling pressure.
ETH still has some ground to cover before hitting the $2,000 resistance. But can the cryptocurrency keep up this momentum? This has all happened because of the same banking collapse that triggered the current rally.
If the dominoes in the banking industry continue to fall, more liquidity will continue to flow into the crypto market.
Glassnode’s analysis of daily on-chain trade flows shows that Ethereum had a positive net inflow of $35.8 million.
Meanwhile, ETH exchange entries and exits suggested that the bullish momentum was about to be challenged. At press time, exchanges were experiencing more entries than exits.
Source: CryptoQuant
More importantly, at the time of writing, the flow of money on both exchanges was slowing down. This result could pave the way for the bears to challenge the bulls, especially if the banking industry is quickly saved.
how much is 1,10,100 ETH is worth today
Is there a risk of another ETH sell-off?
A pullback from current levels will have some seriousness if it is driven by a heavily leveraged long sell-off.
The open interest metric confirms that the demand for ETH in the derivatives market has increased in the last 7 days.
Source: CryptoQuant
Despite this Increased demand for derivatives, the amount of leverage is still low. This is likely due to high volatility and expectations of unpredictable market movements, which discourage leveraged traders.
