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In a new tweet, crypto analyst Ali tells traders to keep a watch on the Ethereum price, which is now hovering above a critical demand zone.
A loss of this critical zone with a lower range of around $1,530 could result in a strong correction for ETH, the magnitude of which is unknown.
On Oct. 8, Ethereum plummeted to a low of $1,548 as the market resorted to profit-taking. Ethereum has been unable to recoup its previous-day losses and is currently in the red. ETH was down 0.54% in the last 24 hours to $1,583 at the time of writing.
According to IntoTheBlock data, Ethereum is currently hovering above a demand zone with a lower support level of $1,533. This is where 2.39 million ETH were bought by 1.83 million Ethereum addresses.
A loss of this support might trigger a decline near $1,485, where, unfortunately, Ethereum has little support even to $1,342.
On the upside, Ethereum faces huge resistance, slightly above where it trades at the moment. This is because 4.38 million addresses purchased 10.92 million ETH from $1,585 to $1,633, at an average price of $1,610.
Derivative data suggests market lacks direction
Blockchain and derivative data paint a less-than-rosy picture of the second-largest cryptocurrency by market value.
Crypto research firm Kaiko said in a new tweet that ETH's open interest has increased since the start of September. Also, funding rates have remained neutral to negative, indicating a lack of direction on the market.
In another tweet, Ali mentioned that Ethereum whales have been offloading their holdings. He claims that since February 2023, Ethereum whales have profited from rising prices, selling or transferring around 5 million ETH worth approximately $8.5 billion. This selling trend is continuing, and there is no present hint of a shift toward ETH accumulation.