Crypto expert Ali recently tweeted that traders should keep an eye on the price of Ethereum, which is now circling above a crucial demand zone.
A loss of this pivotal area, which has a lower range of about $1,530, might cause ETH to experience a significant correction, the size of which is still uncertain.
https://x.com/ali_charts/status/1711733087850131770?s=20
Ethereum fell to a low of $1,548 on October 8 as the market engaged in profit-taking. Ethereum is now in the negative after failing to recover from its losses from the previous day. At the time of writing, ETH has decreased by 0.54% to $1,583 over the previous day.
Sadly, Ethereum has minimal support even to $1,342 if this support is lost, which might lead to a collapse approaching $1,485.
Above where it now trades, Ethereum encounters severe barrier on the upside. This is because 10.92 million ETH were bought by 4.38 million addresses at prices ranging from $1,585 to $1,633, with an average price of $1,610.
Derivative data suggests market lacks direction
The second-largest cryptocurrency by market value paints a less than bright image according to blockchain and derivative statistics.
According to a recent tweet from the cryptocurrency research company Kaiko, open interest in ETH has grown since the beginning of September. A lack of direction in the market is also shown by financing rates, which have stayed neutral to negative.
Ali said that Ethereum whales have started selling off their holdings in another tweet. He asserts that since February 2023, Ethereum whales have reaped the benefits of price increases by selling or moving about 5 million ETH, which is equivalent to almost $8.5 billion. There is currently no indication that the selling trend will change to one of ETH accumulation.
