Bullish Setup For Ethereum As Price Holds $1,770

Main Takeaways:-

• Ethereum’s on-chain support and climbing mood indicated a potential upward momentum.
• Leverage and resistance at $1,867 sparked price swings during breakout efforts.

New Wallet Expansion Signals Ethereum’s Ongoing Network Strength

Ethereum’s network key indicators indicate a resurgence of on-chain engagement. New addresses saw significant growth of 70.09% in the past seven days, while active addresses surged 11.41%.

Also, the number of wallets with zero balance jumped by 105.49%, which could mean people are trying out the network, clearing out old wallets, or have lost access to them. This shows that more people are still getting involved and using the network, even though prices have been changing a lot recently.

So, the growing number of addresses could be an early sign of future demand, supporting the idea that Ethereum’s network is still strong and quietly growing.

Liquidity Improves with Higher Exchange Reserves

Ethereum exchange reserves have surged slowly to $36.07 billion, indicating a 1.16% up. Usually, higher reserves mean more ETH is stored on exchanges, which could suggest there might be pressure to sell.

But this change could also mean traders are getting ready for price changes or adjusting their positions before expected market shifts.

At present, Ethereum is trading at $1,830, situated among critical leverage areas. The Binance liquidation map indicates higher short liquidations under $1,800 and substantial long positions at $1,850, particularly in 50x and 100x leverage zones.

This situation is like a tightly wound spring, where a quick step could cause a chain reaction of liquidations. If ETH goes above $1,850, it could speed up the selling. On the other hand, if the price drops, it could cause more selling of long positions and increase losses.

The market is at a key turning point, and the next moves could decide Ethereum’s next big price change.

Bullish Leverage Builds, but Shakeout Risks Still Present

According to the reports of Binance, it clearly shows that 64.67% of traders are presently holding a long position in ETH, driving the long/short ratio to 1.83. This significant bullish sentiment reflects strong trader trust but also expands the risk of squeezing out if price action shifts against the crowd.

In these crowded trades, any sudden drop below important support levels could trigger a wave of selling from long positions.

But so far, the trend is still in line with other positive signs, suggesting most traders expect the price to keep going up rather than drop.

Ethereum Set for Breakout, But Resistance Persists

Ethereum’s price is stuck in a narrow range, between support at $1,770 and resistance at $1,867. The $1,867 level has been an obstacle in recent attempts to rise. If it breaks above that, the next target could be $2,030, based on the 1.618 Fibonacci extension.

However, caution is needed since the stochastic RSI is around 96, indicating the market may be overbought. Still, the overall pattern of higher lows and flat resistance points to a potential breakout, which traders are watching closely.

Overall, Ethereum’s basics and market sentiment are still in favour of the price going up. The steady support at $1,770 shows that buyers are in control, especially with increasing network activity and a strong balance between long and short positions.

However, resistance at $1,867 is still a key obstacle that must be overcome to verify the upcoming leg upward.

If buyers can break through this zone with volume, Ethereum could boost towards the $2,030 aim and spark a wider momentum change in the market.

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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.