Analysts at CryptoQuant say that Ether (ETH) could rise soon, as indicators in the crypto futures market indicate.
According to a post by analyst Shayan, ETH has just witnessed a significant liquidation event, and historically such events are followed by price increases as the market stabilizes and spot buying pressure prevails. It often happens.
ETH could rebound soon
Earlier this month, ETH prices were on a downward trajectory, with the value of the crypto asset dropping by around 34%. Ether fell from $3,329 to $2,197, according to CoinGecko data.
The plunge sparked investor speculation that the cryptocurrency could fall even further. However, significant buying activity around $2,100 caused the asset to rebound slightly to the $2,500 level, where it remains. At the time of writing, ETH was trading at $2,623, down 2.3% over the past 24 hours.
Ethereum has recorded some recovery, but futures market data suggests that the asset could rise even more significantly. The recent decline has triggered a massive liquidation of perpetual long positions, reaching levels last seen in November 2022. Shayan said the liquidations show that the futures market is cooling down and many leveraged positions are being flushed out. These developments and increased spot buying pressure are likely to generate renewed interest in the market.
“With the futures market likely to reset, Ethereum could be primed for another impulsive bullish surge in the long term once demand returns. A cooling futures market could attract new buyers, pushing the market higher. It has the potential to stabilize and provide a potential recovery from the recent downturn,” Shayan added.
ETH price outlook
While Shayan’s analysis suggests a bullish reversal for ETH, the daily and hourly charts of the asset could indicate the opposite.
Ether has seen a significant bullish reaction around the key support level of $2,100, with solid demand near $2,000, reflecting investor interest and confidence in its long-term potential. Still, the asset faces resistance at the $2,800 threshold. This resistance level includes the lower bound of the wedge that was previously breached during Ether’s sell-off a few days ago.
Recent analysis published on CryptoPotato reveals that as ETH continues to regain momentum, the $2,800 level could disrupt upward momentum and trigger a reversal to the $2,000 support level. .
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