Ether (ETH) Nears Crucial Resistance Level of $3.5K, Data Suggests Bulls May Struggle to Break Through

Ether (ETH), the native token of the Ethereum blockchain, has shown substantial gains recently after trailing market leader Bitcoin (BTC) for most of the current market cycle.

After trailing market bellwether Bitcoin (BTC) for the majority of the current market cycle, Ether (ETH), the native token of the Ethereum blockchain, has shown substantial gains recently. However, ETH is now nearing a crucial resistance level, and data suggests the bulls may struggle to break through.

According to a post on blockchain analysis platform CryptoQuant’s Quicktake by Amr Taha, the number of ETH tokens moving to derivatives exchanges is rising rapidly. This significant inflow often indicates that traders are opening short positions, which could hinder the altcoin’s upward momentum.

Data from Coinglass’s ETH Exchange Liquidation Map shows that $1.93 billion in ETH longs would be liquidated if the price falls to $3,100. Conversely, if the price reaches $3,100, over $760 million in ETH shorts would be liquidated.

As the price of ETH continues to rise, the ETH burn rate is also increasing. Two “engines” on the Ethereum network burn Ether when demand exceeds supply: blockspace burn and blobspace burn. Investors are anticipating a surge in the altcoin as the amount of burnt ETH rises.

2 Engines Burn ETH When Demand > Supply

1) Blockspace Burn

2) Blobspace BurnBoth Engines Firing Now

ETH Blockspace + Blobspace Burning Now Shifting Into Price Discovery Mode

-> Bullishhttps://t.co/W8TmyvXv15

ETH Prints Higher Highs, Might Slow Down at $3,500 Resistance Level

ETH has rallied substantially in the past few weeks, gaining 10.15% in the past week and 36.49% in the past month. Furthermore, the digital asset has risen 67.80% since November 2023 and has a market capitalization of $413.10 billion at the time of writing.

Trading at $3,430.25, ETH is down 30.05% from its all-time high of $4,891.70, which was set in November 2021. The digital asset crossed above $3,000 for the first time since July of this year, and investors are now hoping for a new all-time high by December-end.

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