Crypto: Eth’s Next Big Move Depends On Daily Close Above $2.1k: Data

ETH bulls briefly pressed the price above the $2,000 to support, but will a positive funding rate and increase in holder profitability generate sufficient momentum to hold the level?

Ether (ETH) price reached a weekly high of $2,150 on Thursday, which is a key level for large ETH holders, but volatility in the crypto and stock markets continues to catalyze corrections below $2,000.

A daily close above $2,100 remains important because that level aligns with the cost basis and realized price of wallets holding 100,000 or more ETH. Realized price tracks the last moved price of coins, offering a profitability gauge rather than a spot reference.

Since 2020, Ether has traded below this whale cohort’s realized price only a handful of times, most notably during the 2022 bear market. The chart shows that the price has regularly recovered after the realized price level was tested as support.

Futures market analyst Dom described the setup as “a good clean look for the whole market,” pointing to an early-week sweep near the range lows. Dom said that the price tapped the one-month rolling VWAP (volume-weighted average price) and the value area high, the upper boundary of the price range where most of the volume traded over the past month.

The VWAP measures the average traded price weighted by volume. Acceptance over $2,140 may mark a shift in short-term order flow, while failure to retain a higher level keeps the price inside the established range.

Related: Longest Ether dip since 2022 ignored by whales: What’s next for ETH?

CoinGlass data highlighted short liquidations of over $220 million over the past two days, clearing overhead leverage. Now, roughly $2.66 billion in cumulative long liquidation exposure sits near $1,800, forming a liquidity pocket below the price.

Crypto analyst Pelin Ay pointed to a notable shift in funding rates on Binance. ETH funding flipped sharply negative earlier this month as aggressive short positions piled in alongside Ether price weakness. Following Tuesday’s drop below $1,800, the funding rate has since swung back into positive territory at 0.23%, a sign that late shorts were squeezed out of their positions.

However, with the funding rate now elevated, traders’ positioning appears to be tilting toward the long side. If this trade becomes overcrowded, it raises the risk of a potential long squeeze near the $1,800 level once again, especially if the price momentum stalls or reverses.

Source: CoinTelegraph