The recent rejection of Ethereum at the 100-day moving average (MA) resistance suggests a false breakout and a potential correction. A break above this level could lead to a bullish surge towards $3K, while $2.4K is seen as a critical support level. The increase in Ethereum's demand and bullish momentum has caused it to test the resistance region, but significant supply at this level has led to a rejection. This false breakout indicates a potential period of consolidation correction in the short term. Ethereum is currently trading between the 100-day MA and the $2.5K support region, with a breakout above the resistance expected to signal a sustained bullish trend. On the 4-hour chart, Ethereum has faced intense selling pressure near the critical resistance zone, suggesting a potential halt in bullish momentum. If selling pressure persists, Ethereum could enter a mid-term consolidation correction targeting the lower boundary of the flag pattern at $2.4K. On the other hand, a breakout above the $2.7K resistance could lead to a target of $3K. The futures market for Ethereum is considered overheated, with the rising leverage ratio indicating an increase in bearish sentiment and high-leverage short positions. This leaves Ethereum vulnerable to a potential short-squeeze event, where unexpected price rises could force traders to cover their short positions, resulting in a price spike.



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