Ethereum has experienced a significant surge over the past two weeks, rising from around $1,500 to over $2,600. However, signs of exhaustion are starting to appear.
Technical Analysis
The daily chart shows that Ethereum has hit a technical ceiling just under the $2,900 resistance, closely aligning with the 200-day moving average. This zone previously acted as a major breakdown point in February and now serves as a supply area. The RSI also recently entered overbought territory, indicating that momentum is fading as the price approaches this resistance.
A rejection from this level could lead to a pullback toward the $2,200 support zone and the 100-day MA near $2,100. A confirmed breakout above $2,900 would shift the bias back to bullish, with potential continuation toward the crucial $4,000 zone.
Sentiment Analysis
The recent rally triggered a sharp wave of short liquidations, contributing to the aggressive price surge. The liquidation chart indicates that the largest liquidations occurred near $2,400–$2,600, signifying that a large portion of sellers were forced out of the market. This typically leads to short-term cooling as the "fuel" for the rally gets exhausted.
Ethereum Outlook
The liquidation chart shows a clear uptick in forced closures over the past week, coinciding with Ethereum's breakout. These spikes often mark local tops, as the removal of excessive short exposure eliminates momentum drivers. With liquidations tapering off, the price may struggle to push higher without fresh demand entering the market.
Ethereum displays strong growth; however, with the approach of resistance levels and signs of exhaustion, a potential correction or consolidation may be on the horizon.
