Ethereum Nears $2,800 Level: Breakout or Rejection to Decide Mid-Term TrajectoryEthereum has witnessed a surge in demand near the crucial $21,000 support area, leading to a strong bullish retracement. Prices have now climbed back to the middle threshold of a multi-month descending channel
Ethereum Nears $2,800 Level: Breakout or Rejection to Decide Mid-Term Trajectory
Ethereum has witnessed a surge in demand near the crucial $21,000 support area, leading to a strong bullish retracement. Prices have now climbed back to the middle threshold of a multi-month descending channel. This move suggests the potential for further upside in Ethereum, potentially reaching the $30,000 ceiling.
Daily Chart Analysis
On the daily timeframe, Ethereum experienced greater buying pressure around a key support zone near the downtrend line of a multi-month descending channel, coinciding with the $21,000 price level. The resurgence of demand sparked a bullish reversal, propelling prices above a crucial resistance area encompassing the channel's middle boundary at $2,530 and $2,500. Reclaiming this area signals a potential shift in market sentiment toward bullishness, albeit temporary.
However, Ethereum is nearing the crucial $2,800 level where sellers may intensify their efforts. Price action around this level will be critical in determining Ethereum's mid-term direction. A successful breakout could signal the continuation of an uptrend, whereas a failure to clear this resistance may result in renewed selling pressure.
4-Hour Chart Analysis
On the 4-hour timeframe, Ethereum has experienced a strong rally from the $21,000 support area, corresponding to the lower limit of the flag pattern. This upward momentum has driven prices toward the key resistance zone between the 0.5 ($2,600) and 0.618 ($2,800) Fibonacci levels. Short-term action indicates a waning bearish sentiment as buyers now attempt to push prices above the $2,800 resistance.
The $2,800 level has proven to be a strong roadblock for bulls in recent months, filled with supply and selling pressure. However, if this momentum persists, Ethereum could witness a breakout, leading to a short squeeze and further gains. On the other hand, a rejection at this key resistance might trigger a continued sideways consolidation within the flag pattern, maintaining short-term uncertainty.
On-Chain Analysis: Liquidity Pool Insights
As Ethereum prices continue to form higher highs and lows, approaching the $2,800 level, insights from Binances liquidation heatmap provide valuable context to this move. The ETH/USDT heatmap highlights significant liquidity pools where large market participants or so-called "smart money" often target.
According to the heatmap, the $2,800 level holds the highest concentration of liquidity close to Ethereum's current price. Liquidity tends to attract price, drawing the market towards these pools. Therefore, this area has become a key short-term target for Ethereum. Given this dynamic, the market tends to gravitate toward regions with high liquidity, making it highly probable to see a continued bullish move towards the $2,800 level.
Conclusion
The $2,800 price zone becomes a crucial area to monitor as a potential breakout above could signal the continuation of Ethereum's current uptrend. Traders should closely observe price action around this key resistance to determine Ethereum's mid-term direction.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
