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- Ethereum showed strong bullish sentiment on the price charts.
- A retest of the range highs would provide an ideal buying opportunity.
Ethereum [ETH] saw a small drop from $2867 to $2719 from February 15 to 17.
This came after the strong break past the range highs of $2.6k, a level that bulls have struggled to break over the past six weeks.
The steady increase in the number of active addresses in recent weeks suggested that a long-term uptrend was beginning, but that doesn’t rule out retracements.
Two demand zones were identified, but the data also suggested that a move towards $2900 was imminent.
Measuring the state of the market
Source: ETH/USDT on TradingView
Ethereum’s H12 chart showed a clear upward trend. The market structure was firmly bullish. A decline below $2472 would be needed to turn the structure bearish.
The RSI stood at 73 at the time of writing and has been in overbought territory for the past six days.
This doesn’t require a deep pullback, but it does show that prices were likely overextended and may need time to cool.
Meanwhile, the OBV continued to move higher as buying volume boosted it north.
The steady demand and momentum indicated that it was only a matter of time before Ethereum prices soared to $3,000 and beyond. Above USD 3,000, the USD 3250 and USD 3580 levels formed significant resistances.
Short sellers could soon face liquidations
Source: Hyblok
AMBCrypto also analyzed Hyblock’s liquidation level data.
It is striking that the Cumulative Liq Levels Delta remained positive, despite the small decrease in recent days. This showed that there were more long liquidation levels.
How much are 1,10,100 ETHs worth today?
However, their liquidation clusters were at $2550 and just under the $2700 mark. Meanwhile, a short liquidation level of $179 million was present at $2858 (blue).
Therefore, a move to the $2850-$2900 region was likely. It could be followed by another step up, as the long-term liquidations, although more numerous, were more widespread.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.