Key Points
- Ethereum [ETH] is expected to perform better against the US dollar in the coming days.
- The market structure for Ethereum is bullish, with a possible move towards $2.8k-$2.9k.
Ethereum [ETH] has been lagging behind Bitcoin [BTC] in performance. This is evident in the ETH/BTC chart, which appears to be forming a local bottom. However, Ethereum is predicted to fare better against the US dollar in the near future.
Predicted Price Movement for Ethereum
Analysis of the liquidation levels and price action charts suggest a potential 5% upward movement. However, any further gains would require significant buying pressure.
The daily market structure for Ethereum has turned bullish after surpassing the recent lower high of $2,464. The Relative Strength Index (RSI) also indicates a change in momentum. However, it’s important to note that the overall trend has been bearish since June, following a failed recovery attempt in May.
The Resistance Zone and Potential Reversal
A bearish order block exists at the $2.8k level, which was the local high in mid-August. Ethereum is likely to approach this resistance, but a breakout would depend on overall market sentiment and news developments.
The $2.8k area has a large cluster of liquidation levels, making it a key magnetic zone in the short term. It’s expected that Ethereum will sweep this region before a potential reversal. This is because the $2.8k-$3k region has been a significant support/resistance zone since April, likely housing many sellers. However, if Bitcoin continues its upward rally, the bulls may overpower them.
High-leverage long positions at the $2,647 and $2,621 levels could be targeted in a liquidity hunt in the short term. The positive cumulative liquidation levels delta suggests a near-term price retracement is possible.
The coming weeks are predicted to be bullish for Ethereum, with a potential move towards $2.8k-$2.9k. Any further gains would depend on market sentiment and the strength of the buyers, as reflected in the trading volume.
The information provided should not be considered as financial, investment, trading, or any other type of advice. It is solely the writer’s opinion.
