Ethereum Price: Why the $3,170 Resistance Persists
If you’ve been tracking cryptocurrency trends lately, you might have noticed Ethereum’s ongoing battle with the $3,170 price level. Despite bullish signals on the charts, Ethereum struggles to break this resistance. Let’s explore the key factors affecting ETH’s price movement and what it means for investors.
RSI Divergence and Why It’s Not Enough
In the last month, Ethereum showed a bullish divergence in its Relative Strength Index (RSI), a powerful momentum indicator. From November 4 to November 19, ETH’s price made a lower low while RSI posted a higher low, signaling potential reversal. Historically, patterns like this point to an upward trend for assets as RSI often leads price changes.
However, an earlier signal from November 4 to November 17 also failed to break this resistance level. Despite promising signs, Ethereum’s structure hasn’t supported significant upward momentum yet.
Supply Pressure From Long-Term Holders
One of the main factors weighing on Ethereum is the net-negative behavior of long-term holders. Recent data reveals that as of November 19, long-term investors were net-negative by over 583,000 ETH, equating to approximately $175 million. This consistent selling pressure blocks any major Ethereum breakout attempt.
The Role of the $3,170 Resistance Zone
Diving into the cost-basis heatmap, a critical 2.69 million ETH supply block sits between $3,150 and $3,170. This cluster acts as a significant barrier to upward price movement, aligning with the 0.382 Fibonacci retracement level. Until Ethereum posts a daily close above this range, analysts suggest the price could continue falling or remain choppy within its descending channel.
Upside Potential and Downside Risk
Ethereum’s next target after breaking the $3,170 resistance is $3,656, the key upper Fibonacci zone that could reset its momentum. However, failure to push through $3,170 and hold above $3,056 may lead to further downside risks as the price risks sweeping to the bottom of its channel.
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Conclusion
Ethereum’s battle with the $3,170 resistance reflects the complexity of market patterns and investor behavior. As long-term holders continue to sell and significant resistance zones persist, ETH’s short-term trend remains bearish. For now, investors should closely monitor these key levels and consider safer options like hardware wallets to secure their assets.
