Ethereum’s price has faced significant challenges recently, with struggles to secure $2,000 as a support level.
Despite some price fluctuations, the altcoin has been unable to maintain a strong recovery, keeping it under the resistance of $2,000. However, for many investors, the key target remains to breach this critical price point.
Ethereum Investors Have Profits Waiting For Them
The IOMAP (In/Out of the Money Around Price) indicator shows that about 9.69 million ETH, valued at $18 billion, is currently fluctuating between profit and loss. This significant supply, acquired between $1,880 and $2,048, has seen limited movement over the past month. If Ethereum can break through the $2,000 resistance and flip it into support, this large supply will move into profit.
If ETH can secure $2,000 as support, it may see a strong rebound, pushing Ethereum’s value upwards and making these large holdings profitable.
The MVRV (Market Value to Realized Value) Long/Short Difference currently stands at -18%, indicating that short-term holders are in profit. While this seems positive for STHs, it’s a bearish signal for the broader market. Short-term holders tend to sell their assets as soon as they see profits, which could keep Ethereum’s price suppressed, especially if Ethereum approaches $2,000.
The negative MVRV suggests that the price is currently under pressure from short-term investors looking to capitalize on quick profits. This dynamic could hinder any sustained rally, especially since many STHs have likely accumulated around the $1,800-$2,000 region. This selling pressure might prevent Ethereum from staying above the crucial $2,000 resistance.
Can ETH Price Secure $2,000 As Support
Ethereum’s price stands at $1,879, slightly above the support level of $1,862. The altcoin is looking to breach the $2,000 resistance, which would only require a 6.3% rise.
However, whether this occurs depends largely on the behavior of short-term holders. If they begin to sell off, this rally could be short-lived.
If Ethereum fails to secure $2,000, the price could drop back to $1,862 or lower, as seen in the past. The persistence of selling pressure from STHs could prevent a stable rise above $2,000, leading to a potential consolidation phase or note a drop to $1,745. The price may struggle to sustain upward momentum in the short term.
The only way this bearish outlook can be overturned is if Ethereum breaches $2,141 and flips it into support. Achieving this would mark a clear bullish reversal and set Ethereum on a more stable recovery path. If successful, Ethereum could continue its rise, potentially moving beyond $2,200.
Disclaimer
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