Currently, Ethereum is trading at about $3,190, within touching distance of the $3,200 mark, which has been critical in the past as a significant demand zone. The IOMAP (In/Out of the Money Around Price) chart points out important information regarding potential support and resistant regions corresponding to this price level.
Key Demand Zones and Resistance Levels
This is because the IOMAP chart clearly shows ‘in-the-money’ and ‘out-of-the-money’ addresses that indicate where investors are situated regarding existing prices. There are evident groups below $3000, which shows people who bought the token at prices ranging from $2,478.73 to $2,922.82. These green circles, which depict ‘in the money areas, point to strong buying demand below $3000, which could support prices in case of a pullback.
Nonetheless, between the amount of $3,008.77 and $3,362.13, the red circles represent “out of the money” addresses, where individuals who own Ethereum are trading at a loss. This range is an essential support area where investors may decide to exit at breakeven, putting pressure on the token when it tries to break the $3k level.
Bullish Sentiment May Drive a Breakthrough
As IntoTheBlock pointed out in their chart, the bullish pressure at the moment shows that Ethereum may be able to break resistance, which is often encountered near historically significant price zones. This bullish sentiment, coupled with the recent increased demand, might reduce the strength of a resistance level, thus enabling ETH to surpass $3,000 more easily than in past attempts.
What’s Next for Ethereum?
However, if Ethereum is able to not only approach but surpass the $3,000 level, then a significantly more powerful upward movement may indicate new local highs for 2024. However, if the resistance proves too strong, ETH may be dragged back to the support zones that reside in the $2,478-$2,922 corridor.
Either way, this approach towards the $3K barrier has generated more interest among traders as well as investors, which could be a very significant development for Ethereum’s market trend. The behaviour of Ethereum in this zone may determine its further price direction especially given the current strong sentiment among investors keen on making additional profits.
