The past week has been a rollercoaster for Ethereum (ETH), the second-largest cryptocurrency in terms of market cap. After experiencing a significant downturn that saw its price drop to $2,112, ETH has managed to stage a modest recovery, reclaiming the crucial $2,600 level. Now, all eyes are on the $3,000 milestone once again, as investors eagerly anticipate whether Ethereum can reach new heights.
According to a recent report by market analytics firm CryptoQuant, the recent price action of ETH has been notable for the liquidation of long perpetual positions in the futures market. This significant liquidation event, which has not been seen since November 2022, could indicate a cooling off of the futures market and a resetting of positions. In the past, such developments have often preceded major price rallies, as spot buying pressure takes over and renewed interest in the futures market emerges.
Crypto analyst Caleb Franzen has also expressed optimism about ETH’s future performance. In a social media post on the X platform, Franzen suggested that if Ethereum can break through the $2,725 level, it could signal a strong move higher. His analysis of the market structure and 4-hour candles shows a series of higher lows and bullish readings on supertrend indicators, further fueling the positive sentiment surrounding Ethereum.
Despite the optimism, ETH currently faces resistance at the $2,700 level on the ETH/USDT weekly chart. This has proven to be a significant hurdle for the cryptocurrency in recent days, as it seeks to build momentum and continue its upward trajectory. Overcoming this resistance will be crucial for Ethereum to establish a more sustained bullish trend and potentially reach new all-time high levels.
Ethereum’s recent market trends have been marked by recovery, optimism, and challenges. The liquidation of long positions in the futures market, coupled with positive predictions from analysts like Caleb Franzen, indicate that ETH could be poised for significant price movements in the near future. However, overcoming current resistance levels will be key for Ethereum to solidify its position and continue its upward climb in the ever-changing cryptocurrency market.
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