As speculation mounts around the EIP-1559 update, market participants seem to have rushed to add more ETH to their portfolios. Ethereum price has risen more than 50% since Jul. 21 and seems to have more room to go up.
Ethereum Primed for Higher Highs
The second-largest cryptocurrency by market capitalization has enjoyed an impressive rally over the past two weeks, gaining nearly 1,000 points in market value. The upward price action seems to have been anticipated by the development of a descending triangle on ETH’s daily chart.
Ethereum has surged by 35% after breaking out of this technical formation in Jul. 22. Despite the significant gains incurred within such a short period, Ether looks primed for more.
The height of the triangle’s y-axis suggests that ETH could advance another 17% toward $3,200.
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals no significant supply barrier that will prevent Ethereum from achieving its upside potential. The only major interest area sits between $2,700 and $2,790. Here, roughly 436,000 addresses had previously purchased 781,000 ETH.
This supply zone may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend. But if Ether can slice through this hurdle, it would likely climb to $3,200.
It is worth noting that the IOMAP cohorts show that Ether sits on top of stable support. Approximately 733,500 addresses bought 2.74 million ETH between $2,380 and $2,460. This crucial demand wall indicates that bears would likely struggle to push prices down.
Right now, the odds favor the bulls.