Ethereum continues to show strength, holding above critical support levels and indicating signs of a potential breakout.
Technical Levels and Breakout Points
Crypto analyst Lark Davis noted that Ethereum has consistently bounced from its rising trendline. The 20-day Exponential Moving Average (EMA) serves as short-term support. Davis highlighted the potential breakout above the $4,800 level, which could initiate Ethereum's next rally phase.
> Ethereum continues to respect the uptrend line (orange) and the 20-day EMA as support (yellow). > Watch for retests of these lines or a breakout beyond $4,800 for the next move!
Liquidation Risks and Market Impact
Traders are focused on potential liquidation levels. CoinGlass data suggests that if Ethereum retests its all-time high, an estimated $4.65 billion in short positions could be liquidated. Major exchanges like Binance and OKX hold significant exposure, which could trigger cascading effects if Ethereum pushes higher.
Current Trends and Forecasts
Currently, Ethereum's price hovers around $4,505.97, reflecting a 1.68% decline over the past 24 hours. High volatility is expected, and a move towards $4,958 may result in accelerated short liquidations, enhancing market swings.
Ethereum showcases resilience and continues to hold key support levels; however, potential short liquidation risks and high volatility create a complex market situation.
