Ethereum

<ul>
 <li style="font-weight: 400;">Ethereum’s liquidation level increased once its price reached the $2,170 mark.</li>
 <li style="font-weight: 400;">Its exchange reserve was increasing, but the derivatives metrics looked bullish.</li>
</ul>
<a href="https://ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum’s [ETH]</a> price has once again gained bullish momentum as its price registered an increase in the last 24 hours. 
However, a short while ago, the token fell into a critical demand zone. When ETH dropped to that level, did investors choose to sell their holdings, or were they confident in ETH and expected a price hike?
<h4>Ethereum reaches a critical demand zone&nbsp;</h4>
Ali, a popular crypto analyst, posted a tweet on 13th December highlighting an interesting development. 
As per the tweet, <a href="https://ambcrypto.com/ethereum-price-retraces-what-does-its-prediction-say/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH</a> has dipped into a crucial demand zone, ranging from $1,934 to $2,160. In that range, over 5.58 million addresses were holding nearly 40 million Ethereum.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Ethereum</a> has dipped into a crucial demand zone, ranging from $1,934 to $2,160. Here, over 5.58 million addresses are holding nearly 40 million <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>.
 From an on-chain perspective, this is <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#ETH</a>'s most critical support level. For traders, this could be the ideal reloading point to… <a href="https://t.co/Qh1P8lQMhk" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/Qh1P8lQMhk</a>
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1734870127491817640?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">December 13, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Since ETH was in a critical demand zone, AMBCrypto took a look at Hyblock Capital’s data to see whether there were any sell-offs near those marks.
 As per our analysis, when ETH’s price reached the $2,170 mark, the token’s liquidation did increase, as evident from the fluorescent lines. However, soon after that, the token’s price rebounded and went up.
<div id="attachment_358720" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-358720" decoding="async" class="wp-image-358720 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2.png" alt="" width="1482" height="736" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2.png 1482w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2-300x149.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2-1024x509.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/newplot-1-2-768x381.png 768w" sizes="(max-width: 1482px) 100vw, 1482px"></a>
 Source: Hyblock Capital
</div>
Thanks to that, ETH’s price rallied by more than 4% in the last 24 hours. At the time of writing, ETH was <a href="https://coinmarketcap.com/currencies/ethereum/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">trading</a> at $2,264.32 with a market capitalization of over $272 billion. 
However, if ETH has to sustain its bull rally, it does have to cross a few resistance levels. AMBCrypto’s analysis of Ethereum’s liquidation heatmap revealed that it has to cross a crucial resistance level at the $2,300 mark in the near term. 
If <a href="https://ambcrypto.com/ethereum-heres-the-latest-prediction-for-its-price-and-supply/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH</a> manages to go above that, then ETH has to encounter another crucial roadblock at $2,450.
<h4>Selling pressure on ETH is increasing</h4>
However, the viability of ETH maintaining its bull rally looked slim if supply distribution was to be considered. 
According to an analysis of CryptoQuant’s<a href="https://cryptoquant.com/asset/btc/summary" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external"> data</a>, Ethereum’s exchange reserve was increasing, meaning that selling pressure was high.
 Its aSORP was also red, clearly suggesting that more investors were selling at a profit. In the middle of a bull market, it can indicate a market top.
<div id="attachment_358722" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-1-1.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-358722" decoding="async" class="wp-image-358722 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-1-1.png" alt="" width="602" height="425" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-1-1.png 602w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-1-1-300x212.png 300w" sizes="(max-width: 602px) 100vw, 602px"></a>
 Source: CryptoQuant
</div>
Is your portfolio green? Check the <a href="https://ambcrypto.com/calculator/ethereum-profit-calculator" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH Profit Calculator</a>&nbsp;&nbsp;&nbsp;
Nonetheless, Ethereum’s derivatives metrics looked bullish as its taker buy/sell ratio remained green. Additionally, ETH’s funding rate also remained green while its price increased. 
This meant that futures investors were buying <a href="https://ambcrypto.com/what-ethereums-latest-correction-means-for-its-price-prediction/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH</a> while its price rose, which can be interpreted as a bullish sign.&nbsp;
<div id="attachment_358724" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-358724" decoding="async" class="wp-image-358724 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2.png" alt="" width="1323" height="407" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2.png 1323w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2-300x92.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2-1024x315.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-ETH-2-768x236.png 768w" sizes="(max-width: 1323px) 100vw, 1323px"></a>
 Source: CryptoQuant
</div>

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