Ethereum (ETH) price has surged significantly since October 19, reaching $1,854. The surge confirmed a long-term support trendline and pushed the price towards a descending resistance trendline. Is Ethereum expecting a rebound?
ETH price expectations
The weekly timeframe chart shows that Ethereum price has been rising along a support trendline since the lowest level of $882 in June 2022. So far, the support trendline has measured the upward movement.
In October, ETH price moved higher along the trendline and formed a bullish engulfing candlestick, signaling a reversal of the recent downtrend in the next period.
The last time such a candlestick formed was in July 2021, leading to an all-time high of $4,868 in November. When the relative strength index (RSI) is used as a momentum indicator, investors can tell if the market is overbought or oversold and decide whether to accumulate or sell an asset.
Massive ETH transfers
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In addition, early this morning, two whales withdrew 39,450 Ethereum worth about $68 million from the Bitcoin exchange Coinbase. Then, an hour ago, another whale withdrew $15 million worth of ETH from Coinbase. As a result, $83 million worth of ETH has been withdrawn from centralized exchanges in the past 24 hours.
Such large movements often lead to supply shocks. In this case, it could mean that there is not enough liquidity to meet the demand for the token, causing the price to rise. The potential liquidation of 0xSifu, the former CFO of Frog Nation, could further exacerbate the situation. He has an open position of more than $21 million in ETH on Synthetix perpetual contracts. If the ETH price reaches $1,926, it could face liquidation.
