Ethereum managed to hold its position above $ 200, despite strong sales pressure earlier this week.
The cryptocurrency is now trying to generate some upside momentum as it rapidly approaches an important resistance level.
Traders expect this level to be exceeded in the coming days as the technical outlook is supported by the strong recovery from the recent lows of $ 190.
This is because traders on Bitfinex continue to stack to long positions, driving the theoretical value of ETH longs on the platform to reach new all-time highs.
Ethereum stabilizes above USD 200 as analysts look further up
At the time of writing, Ethereum is trading marginally at its current price of $ 206.
This marks a notable climb from recent $ 200 lows recorded yesterday as sellers attempted to push the crypto back under this key support.
Buyers were able to absorb this sales pressure and pushed it to a high of $ 210 before losing momentum.
The latest crypto rebound marks an extension of the momentum that was first accrued after the crypto fell to a low of $ 190 earlier this week.
This drop jeopardized ETH to see a significant drop and it came along with the plunge of Bitcoin to lows of $ 8,800.
Analysts are now noting that they expect Ethereum to see a further rise in the coming days and weeks as a result of the strong recovery from recent lows.
A popular pseudonymous trader spoke about this in a recent tweet, explaining that it has turned its weekly open (WO) into support and reached an equal level.
He notes that this opens the gates for a move up to $ 215 – a resistance level that can quickly break if the trader’s analysis comes out.
“It turned the WO into support and made it equal. I bet it takes that out. We’re going upstairs, ”he explained, pointing to the map below.
ETH traders are overwhelmingly long
Investors were surprised to learn last week that the notional value of Ethereum long positions on Bitfinex had all-time high.
This trend has not changed since then as margin traders continue to pile into new long positions as they look further upward.
“The face value of ETH longs on BFX continues to rise,” noted a popular trader, noting the striking trend in the chart below.
Another analyst also noted another unpredictable trend, to explain that the popular trading platform now has a higher ETH balance than Bitcoin.
‘It goes on. Bitfinex now has a higher USD balance of ETH ($ 807 million) than BTC ($ 691 million) – per Glassnode, “he said.
The buying pressures resulting from this could propel Ethereum higher in the near term, but it could also fuel the cryptocurrency to see a sharp decline fueled by a cascade of liquidations.
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