Ethereum Encounters a Substantial Resistance Zone, Which May Impede Its Ascent to $3,650

Ethereum (ETH) is presently encountering a substantial resistance zone spanning from $3,170 to $3,270, as it advances beyond the $3,000 price threshold, as reported by U.Today. This area of resistance signifies a substantial accumulation of ETH, amounting to 4.45 million ETH, held by 1.63 million addresses. It is not merely a price point. The accumulation of these holdings may have a significant impact on the potential breakthrough of Ethereum and its ability to attain the highly anticipated $3,650 level.

Ali, a crypto analyst, drew attention to this formidable ETH resistance zone, which was distinguished by a large number of addresses housing a concentration of Ethereum holdings. According to on-chain data, at these price levels, an estimated 1.63 million addresses possess 4.45 million ETH collectively. A considerable proportion of addresses maintaining their ETH holdings within this range signifies a possible juncture for selling, wherein numerous investors may opt to liquidate their holdings, thus intensifying the selling pressure and impeding the price's progress.

A substantial proportion of these holders selling could result in a decline in price. Nevertheless, should these investors maintain their resolve and persist in their holdings, or if sufficient volume of new purchasers enter the market, the price may surpass the resistance and advance toward the subsequent objective of $3,650. Ali suggested in a tweet that ETH could reach $3,650 if it surpasses the threshold between $3,170 and $3,270. As of the moment of writing, ETH had increased by 1.51% over the previous twenty-four hours, reaching $3,243.

Ethereum could target $3,302 next to the 50-day SMA at $3,488 if the current bullish momentum continues. This would target $3,650 and surpass the $3,729 threshold. On the contrary, should the price of ETH decline from its present levels, it may approach the $3,000 threshold. This remains a crucial support for the bulls to hold, as $2,850 could be the next objective if it fails.