Over the past few weeks, Ethereum has performed remarkably well, reclaiming the $2,500 price mark, a level not seen in months due to the heightened bearish pressure that hampered the asset’s growth. ETH’s renewed upward trend is believed to be triggered by several key factors, but one factor tends to stand out in the notable price growth.
Key Driver Behind Ethereum’s Recent Surge
As the market improves, Ethereum witnessed a surge past the $2,500 level in a decisive move that put the asset in the spotlight. However, Glassnode, a leading financial and on-chain data platform, revealed that behind the notable upside price action lies a crucial catalyst.
While several factors were believed to have bolstered Ethereum’s renewed upward trend, Glassnode highlighted that the sharp move above $1,800 and $2,500 was driven by low supply concentration in that range. This makes the price range a critical one to observe in the altcoin‘s upside trajectory.
The development indicates Ethereum’s resilience in the recent market conditions, which could paint a bullish long-term outlook for the second-largest digital asset. However, after slightly surpassing the $1,800 to $2,500 price range, ETH’s rally faced significant resistance at the $2,580 mark.
On-chain data shows that more than 1.3 million ETH were held at this price level, which makes it the next key area that bulls must surpass for a continued upswing. Furthermore, Glassnode noted that the supply at this point dropped to 1 million ETH, showing that holders were exiting the market near a cost basis as the price moved closer to this point.
Ali Martinez, an on-chain expert and trader, also underlined key levels in ETH’s price dynamics after delving into the Global In/Out of the Money metric. The key metric shows holders’ behaviour and interest at certain price levels.
Following his examination, Ali Martinez pointed out a critical price range between $2,060 and $2,420. According to the on-chain analyst, this is the most important support floor for Ethereum, as a substantial amount of ETH is being held by investors at this point.
Martinez revealed that more than 69 million ETH is being held at the level by about 10 million wallet addresses. With ETH now trading above the price range, it could act as a strong support for the altcoin against impending downside attempts.
ETH’s Funding Rate Is Positive
As Ethereum demonstrates bullish action, Kyle Doops, a market expert, outlines that Funding Rates across all crypto exchanges remain flat. ETH’s funding rates persistently staying flat show that traders are not jumping into excessively leveraged positions despite the recovery.
However, Kyle Doops highlighted that ETH’s upward performance is not leverage-driven. Rather, the move is mainly powered by real spot demand. This is because of steady buying activity with no wild liquidations and no leveraged noise. Should futures begin to be pursued as well, the expert is confident that ETH may see significant growth in the upcoming weeks.
Featured image from Pixabay, chart from Tradingview.com
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