Ethereum continues to show a positive trend, with the potential for subsequent growth after testing the $2.8K level.
Technical Analysis
Recently, Ethereum experienced a surge in buying interest, breaking above the critical $2.8K resistance, which had long acted as a barrier. This breakout indicates a shift toward a bullish market structure on the daily timeframe.
However, Ethereum is currently trading within a range between $2.8K and $3.3K, where a short-term consolidation phase is expected. The upper boundary of this range coincides with a bearish price area, which may induce selling pressure.
If Ethereum manages to break above the $3.3K resistance, the next bullish target could be the psychological level of $4K.
Sentiment Analysis
The chart visualizes the Binance Liquidation Heatmap, highlighting zones where significant liquidation events are likely to occur. These areas often act as liquidity magnets, attracting price action due to the concentration of leveraged positions.
Currently, a notable liquidation cluster is located just below the $2.8K mark, suggesting a high probability that Ethereum's price may gravitate toward this level. If this scenario unfolds, ETH would complete its pullback to this key support, potentially reigniting bullish momentum and setting the stage for a rally toward the $3.3K resistance.
On the flip side, another sizeable liquidity pool sits above the $3K level, indicating that following the pullback, Ethereum could also move higher in the short term to tap this zone, potentially triggering a short-squeeze and fueling further upside.
Conclusion
The market situation for Ethereum requires careful analysis. In the coming days, Ethereum is expected to consolidate and correct, which could set the stage for the next bullish rally. Monitoring key levels such as $2.8K and $3.3K will be critical for predicting future price movements.
Ethereum is at a pivotal phase where further movements depend on its ability to hold key support levels and overcome significant resistances.
