- Ethereum price lacks strength and is likely to oscillate between the $1,280 and $1,080 barriers for the foreseeable future.
- Whales holding 100 to 10,000 ETH are gobbling up the altcoin after the recent selling frenzy.
- A daily candlestick close above $1,280 or a breakdown of $1,080 will define the directional bias for the smart contract token.
Ethereum price shows a lack of buying pressure as it approached a crucial hurdle recently. As a result, ETH is now facing a sell-off that could propel it lower than November 9 lows.
Ethereum price loses bias
Ethereum price dropped 36% in five days and slipped inside the $1,280 to $881 range. The midpoint of this bracket at $1,080 came to the bulls’ rescue, resulting in a 25% recovery rally that set a local top at $1,350.
A lack of buying pressure combined with investors booking profits caused the Ethereum price trend to reverse around the aforementioned point, leading to a 7.8% pullback so far. Going forward, investors can expect ETH to reverberate inside this range, extending from $1,080 to $1,280.
A flip of either range limits will determine the overall direction for Ethereum price. An ideal scenario would include ETH sweeping the equal lows formed at $998 followed by a 40% upswing to the $1,400 hurdle.
ETHUSDT 1-day chart
Supporting this massively bullish outlook for Ethereum price is the Supply Distribution metric for whales holding between 100 to 10,000 ETH. This category of investors timed the market perfectly as their number dwindled from 46,664 to 45,819 between September 14 and October 2. During the same period, ETH dropped 23%.
Between November 6 and 9, the number of these have spiked from 45,484 to 46,373. Roughly 800 new whales joined this category, reflecting accumulation. Therefore, investors can bank on the decisions of these smart money holders and expect ETH to rally as well.
 [09.02.37, 11 Nov, 2022]-638037368450161113.png)
ETH supply distribution
While things are looking up for Ethereum price, a daily candlestick close below $1,080 will trigger a downtrend. As long as a sweep of $998 is followed by a quick recovery, the bulls should be fine.
However, a daily candlestick close below $998 will invalidate the bullish thesis for Ethereum price and trigger a correction to the range low at $881.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?