Ethereum is Facing Resistance at $2,800 With Liquidation Levels Indicating a Possible Reversal
Despite Bitcoin’s strong performance, Ethereum [ETH] has not been able to keep up. However, the ETH/BTC chart suggests a potential local bottom forming. The outlook for Ethereum against the US dollar appears more positive in the near future.
An analysis of liquidation levels and price action charts hints at a likely 5% upward movement, but further gains may require substantial buyer intervention.
Signs of a Potential Reversal and Resistance at $2,800
On the daily timeframe, a bullish market structure emerged after Ethereum surpassed the recent lower high at $2,464. The RSI crossed above the neutral 50 mark, signaling a change in momentum.
Despite these positive developments, the overall trend remains bearish since June, following a failed recovery attempt in May. The On-Balance Volume (OBV) also aligns with this downtrend, showing weak buying pressure since March.
Notably, a bearish order block is observed around the $2.8k level, marking it as a strong supply zone following a bearish flip in mid-August.
Ethereum is likely to face this resistance zone, but a breakout depends on broader market sentiment and significant news updates.
Key Observations Pointing Towards $2,800 Target
The $2.8k region is significant due to the clustering of liquidation levels, making it a crucial area to watch in the short term. Ethereum is expected to test this zone before a potential price reversal.
Given that the $2.8k-$3k range has served as a major support/resistance zone since April, it is likely to attract significant selling interest. However, bullish momentum could prevail, especially if Bitcoin maintains its upward trajectory.
In the immediate future, attention is drawn to high-leverage long positions at $2,647 and $2,621, which could be targeted for a liquidity hunt.
Analysis of positive cumulative liquidation levels suggests a possible near-term price correction.
Expectations for the next one to two weeks lean towards a bullish trend for Ethereum, with a potential move towards $2.8k-$2.9k. Further price gains hinge on market sentiment and the strength of buyer activity, reflected in trading volume.
Disclaimer: The information provided is reflective of the writer’s opinion and should not be construed as financial, investment, or trading advice.