A popular crypto analyst examines buyer interest at various price levels to assess where Ethereum’s (ETH) leading smart contract platform is headed.
The InvestAnswers YouTube channel host believes that a rough start to 2022 hasn’t stopped ETH from rising from the $1,720 level above $1,900.
Etherium has been very volatile and depressed. It has held at that $1720 support level for a very long time, which has acted as solid support since 2021.
Network data shows a hard supply barrier between about $1906 and $1963, where about 900,000 addresses have bought more than eight million ETH.
The analyst noted that if ETH can overcome the $1906 to $1,963 resistance zone, the altcoin could surpass the $2,000 mark by another 10%.
ETH must overcome this resistance to rise above $2,200. We should probably expect what I call the “tapping on the glass” necessary to get past that level and move to $2,200.
Margin longs have reached a new all-time high. Note that longs, which are usually a bullish indicator, rose significantly in mid-May and now total about a hundred thousand bitcoin contracts, the highest in the history of the crypto industry.
To understand just how strong this move has been, you can compare it to June/July 2021, the previous historical high of 50,000 longs. That figure has doubled.
The analyst concluded by saying that he thinks the renewed interest in bitcoin futures is a bullish indicator.
These Bitfinex margin long positions don’t always work out, but about 75% of the time they do, so it’s a bullish sign that we’ve hit bottom.
I’m not promising that we’ve bottomed, but all avenues point to it.
Bitcoin is currently trying to recover from the big drop on June 6, when it plummeted from $31,518 to $29,419. The major cryptocurrency has already climbed above $30,000, correcting 3.6% in the last 24 hours to $30,700.