Will Ethereum Press Past $2,000 Following a 10% Weekly Increase (Ethereum Price Judgment)
Ethereum's Current Standoff: A Bit of a Rollercoaster Ride
Ethereum (ETH) is straddling a crucial resistance zone at around $1.8K, shaking off its recent gains but showing signs of a temporary pause before resuming its upward voyage.
Breaking Down the Action
The Daily Dance
After a powerful surge driven by robust buying pressure at the crucial $1.5K support level, ETH finds itself staring down a formidable barrier at $1.8K. This bullish surge has left aTell-tale fair value gap, indicating the presence of shrewd money on the buyers' side. However, the $1.8K region is no walk in the park, as it coincides with a prior order block chock-full of supply, making it a formidable impediment.
So, what's next? Ethereum might enter a brief consolidation phase, possibly followed by a minor tussle before embarking on its next bullish charge. Should the bulls manage to crack this resistance, the next obstacle on the radar would be the crucial $2.2K level.
The 4-Hour Tussle
On the lower timeframe, ETH's market structure has undergone a dramatic shift, with a breakout above a multi-month descending channel paving the way for a robust surge toward the $1.8K resistance zone. This levels align with previous significant swing lows, accentuating its importance. However, momentum seems to be sputtering at this critical hurdle, as the price settles into a low-volatility consolidation phase.
At the same time, a bearish divergence between the price and the RSI indicator has cropped up, hinting at the probability of a short-term corrective move. As a result, extended consolidation or a minor pullback is in the cards before any compelling bullish breakout attempt.
The Invisible Hand: Onchain Analysis
The Binance liquidation heatmap keeps us at the edge of our seats, dishing out precious insights on Ethereum's current market structure and its potential future movements. Liquidity zones, often clustered around psychologically significant numbers, pull at the price like magnets, as market participants seek to trigger stop-losses and liquidations.
At the moment, Ethereum's price action reveals growing strength. After skirmishing its way back from the vital $1.5K support nation and reclaiming crucial technical levels, ETH now stands on the precipice of a sizable concentration of liquidation levels, nestled snugly around its previous high near the critical $2K mark. Historically, during periods of recovery or bullish enthusiasm, markets are drawn toward such liquidity pockets, as institutional players and smart money eye the opportunity to shake out trapped sellers by triggering forced liquidations.
Should Ethereum continue its upward trajectory and break into the $2K liquidity cluster, a cascade of short liquidations could be unleashed, injecting additional volatility and amplifying buying pressure. This could potentially catapult Ethereum rapidly toward the next critical resistance zone near $2.5K.
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- Ethereum's resistance at around $1.8K, a prior order block full of supply, is a formidable barrier for the cryptocurrency, which is currently showing signs of a temporary pause after a bullish surge.
- Should the bulls manage to crack this resistance, the next obstacle on Ethereum's radar would be the crucial $2.2K level.
- On the 4-hour timeframe, Ethereum's price is in a low-volatility consolidation phase following a breakout above a multi-month descending channel, but a bearish divergence between the price and the RSI indicator hints at a short-term corrective move.
- The Binance liquidation heatmap suggests that a sizable concentration of liquidation levels, around the previous high near the critical $2K mark, could potentially be targeted during periods of recovery or bullish enthusiasm.
- If Ethereum breaks into the $2K liquidity cluster, a cascade of short liquidations could be unleashed, injecting additional volatility and amplifying buying pressure, potentially catapulting Ethereum rapidly toward the next critical resistance zone near $2.5K.
- Crypto trading, particularly Ethereum investing, involves a mix of finance, technology, and technical analysis, and it's essential to keep an eye on factors like liquidation levels and resistance zones in these volatile markets.
