Ethereum (ETH) recently experienced a significant downturn, dropping to $2,112, the largest market slump of the year. However, the cryptocurrency has since rebounded, gaining 8% over the last week and surpassing the crucial $2,600 level. This recovery has reignited hopes of reaching the $3,000 milestone.
Market analytics firm CryptoQuant highlighted a substantial liquidation of long perpetual positions on the futures market during last week’s crash. Such events in sustained bull markets often precede a major price rally as the futures market stabilizes and spot buying pressure increases. The recent liquidation suggests a cooling of the futures market, setting the stage for renewed interest and a potential bullish surge for Ethereum in the longer term.
Crypto analyst Caleb Franzen shared a similar bullish outlook for Ethereum’s price, stating that breaking the $2,725 level could indicate a strong move higher. Franzen’s analysis of 4-hour candles and market structure points to higher lows and bullish readings on supertrend indicators, adding to the positive sentiment surrounding Ethereum’s future performance.
Despite the recent recovery, Ethereum is currently facing resistance at the $2,700 level on the ETH/USDT weekly chart. This level has proven to be a significant hurdle for the cryptocurrency in recent days, highlighting the challenges it must overcome to continue its upward momentum.
Ethereum’s recent recovery and potential for a sustained bullish trend have sparked optimism among market analysts and traders. The liquidation of long positions on the futures market, coupled with positive technical indicators, point to a possible rally in Ethereum’s price in the near future. However, the cryptocurrency still faces challenges, particularly in breaking through key resistance levels. Overall, Ethereum’s future performance will depend on market demand, investor sentiment, and external factors influencing the broader cryptocurrency market.
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