Ethereum (ETH) price has significantly increased since October 19, reaching $1,854. This surge has confirmed the long-term support trend line and moved the price towards the decreasing resistance trend line. Is Ethereum expecting a rally?
The weekly timeframe chart shows that the Ethereum price has been rising along with a support trend line since its lowest level in June 2022, which was $882. The support trend line has measured the upward movement so far.
In October, the ETH price increased along the trend line and created a bullish engulfing candlestick, indicating a reversal of the recent downtrend in the next period.
The last time such a candlestick was formed was in July 2021, which led to an all-time high price of $4,868 in November. When the relative strength index (RSI) is used as a momentum indicator, investors can determine whether the market is overbought or oversold and decide whether to accumulate or sell an asset.
In addition, early this morning, two whales withdrew approximately $68 million worth of 39,450 Ethereum from Coinbase. Then, an hour ago, another whale withdrew $15 million worth of ETH from Coinbase. As a result, $83 million worth of ETH has been withdrawn from centralized exchanges in the last 24 hours.
Such large movements can often cause supply shocks. In this case, it may mean that there is not enough liquidity to meet the demand for a token, leading to price increases. The potential liquidation of former Frog Nation CFO 0xSifu could further worsen this situation. He has over $21 million open positions in ETH on Synthetix perpetual contracts. If the ETH price reaches $1,926, he may face liquidation.