Sign Up on MEXC
Highlights
- Ethereum's price has entered a supply zone and might face a short-term correction.
- A potential correction could liquidate $973 million worth of long positions if Ethereum's price drops below $1,731.
- A correction stabilizing between $1,700 and $1,600 could lead to an intermediate higher low and an extended bullish reversal.
Ethereum price has slowed down its bullish momentum despite the recent rally. This is mainly due to its entry into a key supply zone. As a result, ETH price may experience a short-term correction that could liquidate $973 million longs. A sweep of this liquidity could lead to a swift rally to $2,000.
Nearly $1B Ethereum (ETH) Longs Face Liquidation Risk
According to CoinGlass’ Liquidation Map data, $973 million long positions will be culled, aka liquidated, if Ethereum price drops nearly 4% to $1,731. These positions are likely FOMO longs that were placed price rallied 15% this week in under two days.
Ethereum Price Analysis: Will Crash First before $2,000?
The four-hour chart shows Ethereum price has hit a supply zone, extending from $1,780 to $1,820, after a 15% rally. Today, ETH’s price trades at $1,795 with the Relative Strength Index (RSI) producing lower lows after hitting the overbought zone, typically indicating a decline in bullish momentum. Over the past month, a decline in RSI inside the overbought conditions has led to corrections. If history repeats, then correction is highly likely for Ethereum (ETH).
However, due to the weekend, ETH price will be volatile, leading to liquidity hunts.
The most amount of pain will be caused if Ethereum price slides down to $1,731 or lower. However, there might be a push to the upside first to liquidate eager shorts before culling the late longs.
Two key levels to watch during the weekend include – $1,840 and $1,890, potentially up to $1,900. A short-term spike into this area to lure longs and liquidate shorts would be the best signal that ETH price is heading lower.
To the downside, Ethereum must manage to hold $1,669 or at least $1,600 to resume its recently developed bullish trend. A failure to do so could spell trouble for ETH bulls.
CME Ethereum Futures Chart Shows Gap Below
The Ethereum price chart for CME Futures produces gaps due to the markets being closed on the weekends. Popularly called as the “CME Gaps” often get filled as price retraces. The gap at $1,763 is filled after a 15% rally this week. However, this uptrend also created a new gap, which further supports a potential short-term correction for ETH price.
A correction that stabilizes between $1,700 and $1,600 could lead be the intermediate higher low that leads to an extended bullish reversal for Ethereum price.
Frequently Asked Questions (FAQs)
1. What might happen to Ethereum's price in the short term?
2. How much in long positions are at risk of liquidation?
3. What are the key levels to watch for Ethereum's price?
- Breaking: U.S. PPI Cools To 2.6%, BTC Price Rises
- Traders Brace for Hot US PPI amid Sticky Inflation, Risks BTC, ETH, XRP Liquidations
- Shiba Inu Releases Update On LEASH V2 Migration, Here Is What To Know
- GameStop’s Revenue Boosted by $528M Bitcoin Stash, Reports Minimal Q2 Loss
- Metaplanet Stock Shoots 17% After $30M Investment from Bitcoin Treasury Firm
- Bitcoin Price Prediction Eyes $150K as Trump Calls for Aggressive 100 BPS Rate Cut
- Solana Price Prediction: Can Nasdaq Listing and $94M Holdings Propel SOL Toward $400?
- Meme Coin Price Prediction: Shiba Inu, Pepe Coin, Dogecoin, TRUMP
- HYPE Price Eye $88 the Next as Lion Group’s Treasury Shifts to Hyperliquid
- XRP Price Prediction as Ripple Ecosystem Growth Meets Technical Strength—Is $10 Next?
