Ethereum (ETH) has been underperforming compared to Bitcoin (BTC) recently, as seen in the ETH/BTC chart. However, there are signs that Ethereum could be approaching a local bottom and might outperform the US dollar in the near future.
Based on liquidation levels and price action charts, there are indications of a potential 5% upward movement, but breaking through higher levels would require strong buying interest.
Ethereum’s Momentum towards Key Resistance
On the daily timeframe, the market structure turned bullish as Ethereum surpassed the recent lower high at $2,464. With the RSI above 50, there’s a shift in momentum direction.
Despite this bullish move, the overall trend has been bearish since June, following a failed recovery attempt in May. The On-Balance Volume (OBV) also reflects weak buying pressure since March.
A bearish order block at the $2.8k level indicates a strong supply zone. Ethereum might test this resistance level, but a breakout will depend on market sentiment and external developments.
Support for the $2,800 Target
The $2.8k price area hosts a cluster of liquidation levels, making it a significant short-term attraction point. Ethereum is likely to approach this zone before a potential reversal.
Considerable support and resistance have been observed in the $2.8k-$3k range since April. While there could be many sellers in this zone, bullish momentum, especially if Bitcoin’s rally continues, might overcome the selling pressure.
In the immediate term, traders should watch high-leverage long positions at $2,647 and $2,621, which could be targeted in a liquidity hunt.
The positive cumulative liquidation levels delta hints at a possible price retracement in the near future.
The upcoming weeks are expected to be bullish for Ethereum. A move towards $2.8k-$2.9k seems likely, with further momentum contingent on market sentiment and buyer presence, as reflected in trading volumes.
Disclaimer: The above information is the author’s personal opinion and should not be considered as financial or investment advice