Latest Ethereum Price Trends
- Ethereum’s price hovered around the $2,600 mark during a recent market dip.
- A CryptoQuant analyst anticipates a potential short squeeze for ETH, with $2,700 acting as a significant resistance level.
On Monday, October 21st, Ethereum surged to nearly $2,750, following a market-wide upswing propelled by Bitcoin crossing the $69,000 threshold. However, with Bitcoin’s subsequent decline, Ethereum’s value retraced to about $2,600 on October 22nd.
Currently, Ethereum is trading above $2,620. Analyst Shayan B from CryptoQuant indicates that heightened leverage in the market might trigger a short squeeze. If bulls can surpass the resistance at $2,700, there could be further upward movement in Ethereum’s price.
Understanding Ethereum’s Price Outlook
The overall sentiment in the market appears bearish for Ethereum, suggesting that traders are bracing for a potential downward trend. Nevertheless, with leverage reaching concerning levels, a short squeeze could lead to a dramatic price surge accompanied by significant liquidations.
In scenarios like this, ETH could experience notable gains.
According to the analyst, “With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event. In such a scenario, if ETH’s price rises unexpectedly, traders holding short positions could be compelled to cover by purchasing ETH, resulting in an impulsive price spike.”
The pivotal level to watch remains around the 100-day moving average, which is near $2,700. This resistance will be critical for bulls seeking to push ETH prices higher.
Ethereum Faces Short-Squeeze Risk: Rising Leverage and Key Resistance at $2.7K
“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.” – By @ShayanBTC7
👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
According to data aggregated from Coinglass, the total liquidations across the cryptocurrency market in the past 24 hours exceeded $165 million, with approximately 75% comprising long position liquidations totaling about $129 million. Meanwhile, short positions accounted for around $36 million. Specifically for Ethereum, long positions represented $36 million of the $39 million liquidated within the same timeframe.
It’s notable that Ethereum reached its highest point of the year at $4,070 back in March.
