Ethereum crosses a key price level – Is a new rally in the works?

Journalist

Posted: November 10, 2023

• Ethereum was up by more than 2% in the last 24 hours.
• Buying sentiment remained dominant in the derivatives market.

All eyes have been on Ethereum [ETH] as it managed to remain above the $1,900 mark for some time now. Adding to the excitement, new data revealed that ETH has managed to break a key resistance level which could initiate another rally in the days to follow.

Ethereum is breaking a key resistance barrier!

Ethereum has been exhibiting a promising performance over the week as its price remained above the $1,900 mark.

In fact, the token’s price surged by more than 4%. According to CoinMarketCap, in the last 24 hours alone, Ethereum’s value increased by over 2%.

At the time of writing, ETH was trading at $1,914.42 with a market capitalization of over $230 billion.

Thanks to this, Ethereum managed to break a key resistance level recently.

Caleb Franzen, the founder of Cubic Analytics, revealed that ETH finally managed to go above a level that it couldn’t surpass on quite a few occasions earlier.

Better news: $ETH is breaking through resistance. https://t.co/6zTeOTTxwC pic.twitter.com/CQljXcMb37

— Caleb Franzen (@CalebFranzen) November 9, 2023

When AMBCrypto checked ETH’s daily chart, a few indicators showed what helped ETH break the barrier.

For instance, the MACD displayed a clear bullish advantage in the market. The Bollinger Bands pointed out that ETH’s price was in a high volatility zone.

Ethereum’s Relative Strength Index and Chaikin Money Flow both remained relatively high throughout the last few days, allowing the token to push its price up.

Source: TradingView

Is this the beginning of a new rally?

While the token’s price rallied, it continued to remain a topic of discussion in the crypto space. This was evident from its high social volume.

However, it was surprising to see that its weighted sentiment dropped sharply on 8th November. 

Source: Santiment

A more concerning metric was ETH’s exchange netflow, which revealed that selling pressure on the token was high.

High selling pressure can cause ETH’s price to plummet and, in turn, put an end to the token’s bull rally.

Nonetheless, as per CryptoQuant, ETH’s active addresses remained high, as did its transferred volume, which both looked optimistic. 

Is your portfolio green? Check the ETH Profit Calculator  

We then checked the token’s derivatives market stats, which provided more relief. ETH’s funding rate was green, meaning that derivatives investors were buying the token at its higher price.

Additionally, Ethereum’s taker buy/sell ratio was also green, suggesting that buying sentiment is dominant in the derivatives market.

Source: CryptoQuant