Ethereum Nears Massive Resistance Region as On-Chain Volume Surges
After a long period of trading sideways within the mid-$180 region, Ethereum (ETH) has now begun to incur significant upwards momentum that has pushed it up to $190, which is where it faces some notable resistance that could ultimately push its price lower in the near-term.
Analysts are now noting that this resistance level could halt Ethereum’s rally and possibly lead it to drop significantly lower in the near-term.
Ethereum Runs Towards $190
At the time of writing, Ethereum is trading up over 2% at its current price of $190, which marks a notable climb from its daily lows of $184 that were set during a fleeting sell off experienced by the cryptocurrency yesterday.
It is important to note that Ethereum is currently pushing up against the price level at which it was rejected at in late-October, which sparked a sell-off that sent it down to the lower-$180 region.
This upwards movement has come about while Bitcoin continues to trade sideways in the lower-$9,000 region, which is squarely in the middle of the trading range that it has been caught within for the past several days and weeks.
One interesting fact that should be observed is that the recent ETH rally has been driven by a massive influx of on-chain trading volume, which has surged over 80% in the past 24-hours according to data from TokenAnalyst.
“24H #ETH Network Stats: Price: $184.25 (+1.0%). $ETH On-Chain Volume: $400M (+80.8%). Active Senders: 211K (+13.9%). Active Recipients: 97K (+14.2%),” the data group explained in a recent tweet.
ETH Nearing a Key Resistance Level that Could Result in a Rejection
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Ethereum may dip lower in the near-term after it pushes up against its “overhead supply” level that exists right around its current price of $190.
“$ETH low time frame: Price swept and closed below the highs at $187.5, looks ready to drip back down to previous resistance at $184-185. Low time frame demand block that sent price through that level should act as a solid long entry. Target being the supply overhead at $190,” he explained while pointing to the chart seen below.
How Ethereum responds to this level in the coming hours and days will likely offer significant insight into which direction it will trend next.