Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is at a crucial level, indicating a make-or-break situation for the altcoin. This prediction is based on ETH’s current price action in the four-hour time frame.
Ethereum (ETH) Technical Analysis and Upcoming Level
According to expert technical analysis, ETH appears to be forming an ascending triangle pattern on the four-hour time frame but is currently facing resistance from the descending trendline and seems to be falling toward the pattern’s support level.
Based on the recent price action, if ETH fails to hold the $2,680 level and closes a four-hour candle below $2,670, there is a strong possibility it could drop by 4.5% to reach the $2,560 level in the coming days.
Along with the bearish outlook, ETH is currently trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a downtrend and has the potential to continue this bearish trend further.
Ether Liquidation Risk
With the bearish outlook, intraday traders’ $74 million worth of long positions are on the verge of liquidation. Data shows that a significant $72 million worth of long positions was opened when traders became over-leveraged at the $2,657 level. This massive amount of ETH will be liquidated if the price falls below this over-leveraged level.
Conversely, traders holding long positions are over-leveraged at the $2,730 level, with $275 million worth of long positions at risk of liquidation if the price falls further.
Current Price Momentum
Currently, ETH is trading near the $2,685 level and has experienced a modest price drop of 0.55% in the past 24 hours. However, during the same period, its trading volume dropped by 9%, indicating lower participation from traders and investors.
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