Ethereum’s Recent Price Action
Ethereum’s recent rejection at the 100-day MA level suggests a false breakout and a potential short-term correction, indicating a crucial resistance point at $2.7K.
Price Outlook and Support Levels
If Ethereum breaks above this level, it could spark a bullish surge towards $3K. However, the price is likely to consolidate, with $2.4K serving as a critical support level.
Technical Analysis: The Daily Chart
Ethereum has experienced increased demand and bullish momentum recently, testing key resistance levels. The rejection at $2.7K and the subsequent drop below the 100-day MA suggest a potential period of consolidation and correction in the short term.
Ethereum is currently trading between the 100-day MA and the $2.5K support region, with a breakout above indicating a sustained bullish trend.
The 4-Hour Chart
On the 4-hour chart, Ethereum faced strong resistance near the $2.6K and $2.7K levels, leading to a halt in bullish momentum. A break above this range could trigger significant short liquidations and a price rally. However, intense selling pressure near these levels may result in a mid-term consolidation towards $2.4K.
Onchain Analysis
The Estimated Leverage Ratio (ELR) in the futures market has been rising, indicating an increase in leveraged short positions and a bearish sentiment towards Ethereum’s price prospects. The market is overheated, leaving ETH susceptible to a potential short-squeeze event.
A breakout above the 100-day MA at $2.7K could lead to massive short liquidations and a surge in ETH’s price.
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