Ethereum is set to break a key resistance level next week. The largest altcoin by market cap was trading at $1,750 after a fall of 1.15% the previous day.
But the weekly gains for Ethereum are still in the double digits as a pre-merger preparation. There is growing optimism in the Ethereum community that the coin will finally break the $1,800 resistance now following the recent momentum. However, there is a major concern surrounding this narrative.
on green pastures
An anonymous crypto analyst known as AtltCryptoGems Feather Twitter Said that ETH is “ready to break” the $1,786 resistance level soon.
This, following the impressive performance of ETH recently, as it sits above the 20/50MA and “will likely test the 200MA.”
Traders are seeing extended periods of profitability from ETH trading. According to the latest data from analytic platform Sentiment, Ethereum has an MVRV ratio (30d) of around 7%.
This means that short-term holders are seeing increased profitability that has waned greatly in late August and early September.
Ether has also been trending among top whales lately. According to recent whalestats UpdateETH was the most bought coin by the top 5000 Ethereum whales on 12 September.
These whales spent an average of $5,058 on Ethereum, taking the average volume to over three ETH.
However, if we look at the bigger picture, there has been a change in the ETH supply momentum among the top addresses.
The overall supply of Ether among the top addresses (whales) has declined by about 1% which appears to be a thorn in the rose.
the odd one out
Crypto analyst Justin Bennett has also shared his opinion on the appreciation of Ethereum in recent days. In his latest tweet, Bennett has warned the crowd against Fed-enforced volatility for crypto assets.
This is because the next Federal Open Market Committee (FOMC) meeting is scheduled for September 20-21, which has historically kickstarted short-term volatility among crypto assets, including Ethereum.
According to his analysis, the crypto market is 5% below a “massive resistance zone” and there could be another push before “the next phase of downside.”