Ethereum has been closely tracking Bitcoin’s volatile price action as of late, which head led ETH to gain a firm position within the $140 region. The cryptocurrency’s bulls have shown signs of growing vitality over the past several days, which comes as the altcoin market begins flashing hints of having immensely bullish near-term potential.
It is important to note that Ethereum’s bulls have now created an unprecedented buy wall on a major exchange, signaling that bears would have to incur massive strength in order to push the crypto down from its current price levels.
This massive buy wall may be one factor that helps ETH spark a parabolic rally, as one analyst is noting that the crypto could soon target a move to $180, with a break above this level potentially leading it as high as $280.
Ethereum’s Bulls Build Massive Buy Wall as ETH’s Price Action Grows Bullish
At the time of writing, Ethereum is trading up marginally at its current price of $145, which marks only a minor decline from its daily highs of $147 that were set yesterday in tandem with Bitcoin’s rally to $8,300.
Although both Bitcoin and Ethereum were rejected shortly after this attempt at another rally began, bulls have been able to absorb enough of the selling pressure to hold the cryptocurrencies well above their key support levels.
One factor that should be carefully considered in the near-term is that ETH currently has a massive buy wall of roughly 35,000 ETH on Okex, sitting just a hair below its current price level.
“Massive buy walls now on okex march2020 $ETH, 143 equiv in spot seems to be a very important re-accumulation level, around 35k ETH,” Su Zhu, the CEO of Three Arrows Capital, explained in a recent tweet.
Massive buy walls now on okex march2020 $ETH,
143 equiv in spot seems to be a very important re-accumulation level, around 35k ETH. https://t.co/U1us2S5c7S pic.twitter.com/TugD1KtvbR— Su Zhu (@zhusu) January 12, 2020
Could This Buy Wall Spark a Parabolic ETH Rally?
A buy wall of this magnitude, should it remain on the order books, is bound to enhance Ethereum’s bullishness.
Livercoin – a popular crypto analyst on Twitter – explained in a tweet from yesterday that there are two key resistance levels ETH could soon target, sitting at $180 and $280 respectively.
“Decent S/R flip on $ETH against dollar… wouldn’t short that,” he noted while pointing to the levels marked on the below chart.
decent S/R flip on $ETH against dolla
wouldn't short that pic.twitter.com/UDYyXBtQey
— Livercoin (@livercoin) January 10, 2020
The massive Ethereum buy wall coupled with its recent support/resistance flip of $133 paints a bullish picture, signaling that the crypto could soon see significantly further upside.
Featured image from Shutterstock
