Recent data from the cryptocurrency futures market has led a CryptoQuant analyst to predict a potential rally for Ether (ETH) in the near future. Following a significant liquidation event, historical trends suggest that ETH may experience a price rally as spot buying pressure increases and markets stabilize. Despite a recent dip in ETH price, which saw a 34% loss in value, the asset has shown signs of recovery, hovering around the $2,500 mark.
The recent decline in ETH price triggered a mass liquidation of long perpetual positions, indicating a cooling of the futures market and the flushing out of leveraged positions. This development, combined with rising spot buying pressure, suggests a potential renewed interest in the market. The analyst, Shayan, believes that if demand returns, Ethereum could see another bullish surge in the longer term as the futures market resets.
While the analysis from Shayan points towards a bullish reversal for ETH, the asset’s daily and hourly charts may paint a different picture. Despite showing strong support near the $2,100 level and significant demand at $2,000, ETH is currently facing resistance at the $2,800 threshold. This resistance level includes the previously breached lower boundary of the wedge during Ether’s recent price plunge.
Despite the conflicting signals from market data, the overall sentiment towards Ether remains optimistic. The cooling of the futures market and the potential influx of new buyers could lead to a stabilization of the market and a possible recovery from the recent downturn. If demand continues to rise and the market sentiment remains positive, Ether could be poised for an impressive bullish rally in the coming weeks.
While market analysis and technical indicators provide valuable insights into the potential future movements of Ether, the cryptocurrency market remains highly volatile and unpredictable. Investors and traders should exercise caution and conduct thorough research before making any investment decisions based on short-term market trends.
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