By Nermeen Nabil Khear 
Ethereum’s price has recently experienced a massive drop, coming much earlier than expected, as ETH has failed to make a new all-time high like Bitcoin.
Yet, the bull market for the second-biggest crypto might not have begun yet.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, it is evident that the price has been making lower highs and lows since December 2024 after failing to break above the $4,000 resistance level. The 200-day moving average, located around the $2,900 mark, has also been lost, as ETH has lost more than a third of its market capitalization.
However, the market rebounded significantly yesterday, bouncing from the $2,100 support zone and even breaking above the $2,400 level. Yet, for a new bullish trend to begin, the price would still need to climb back above the 200-day moving average, or this might just be another bull-trap.
The 4-Hour Chart
The 4-hour chart shows a clearer picture of recent price action, as ETH might be experiencing a V-shaped recovery. Yesterday’s price jump has come with considerable momentum, as the $2,400 level has been easily broken through.
However, this area is now being re-tested, as the asset is pulling back to find a footing. If the $2,400 level holds, the price could be higher toward the $2,700 resistance level in the coming days.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Short Liquidations
While it usually takes time for the futures market to become overheated during bull runs, the same cannot be said for crashes. During the recent decline, many futures traders have opened leveraged short positions in the hopes of capturing quick profits from the drop. However, this might have led to yesterday’s price spike.
This chart presents the total amount of short liquidation in terms of ETH across all centralized exchanges. As evident, the market has experienced tremendous short liquidation cascades, the largest in the last couple of years.
The automatic closure of these short positions adds to the buying pressure in the futures market, which is likely one of the main reasons behind yesterday’s price bounce. Yet, for a new bull trend to begin, it is essential for the market to continue higher on spot demand.
The post Ethereum Price Analysis: ETH Must Reclaim This Key Resistance to Restart Its Bull Run appeared first on CryptoPotato.
Ethereum’s price has recently experienced a massive drop, coming much earlier than expected, as ETH has failed to make a new all-time high like Bitcoin. Yet, the bull market for the second-biggest crypto might not have begun yet. Technical Analysis By Edris Derakhshi (TradingRage) The Daily Chart On the daily chart, it is evident that Crypto News, ETH Analysis, ETHBTC, ETHUSD, Ethereum (ETH) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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