Watch Your Trade While Ethereum Price Tests Its $1600 Level
8 Million ETH purchased by 1.94 million addresses
On chain data suggests a cautious movement ahead
The Bitcoin bulls have been teasing the $23,000 area every now and then as the price shifts. Since the start of February 2023, the King currency is fluttering too often which has also affected other cryptocurrencies like Ethereum. However, Ethereum price has been strongly holding on to its resistance lately.
At the time of writing, the second largest cryptocurrency is valued at $1,632 after a drop of 2.51% over the last 24hrs. While ETH has gained more than 40% since January.
A Testing Time For Ethereum Price
As per the data from Ethereum network, the current $1,600 area might be a strong support area above which the currency should maintain its trade. Similar is the thought process of crypto analyst Ali Martinez who claims that the area between $1,600 and $1,650 is the support area for Ethereum.
Further the analyst states that as per on chain data there has been a purchase of 8 million ETH by 1.94 million addresses. Interestingly, these purchases have been made while Ethereum was trading between $1,600 and $1,650.
Additionally, Analytex data reports prove that Ethereum’s network activity has increased in the month of January. This increase has pushed the currency’s average gas price which has surged by 29.27% in January
However, Ethereum’s daily transaction seems to have taken a backseat as there is a fall of 0.8% in January when compared to that of December.
Hence, it’s a crucial time for Ethereum to maintain its trade above $1,600 and make a strong move above its next major resistance of $1,640. If the lead altcoin fails, ETH might even be pulled back towards $1,550 support.