- Ethereum worth traded close to $2,600 as crypto skilled a quick lull.
- A CryptoQuant analyst says ETH might witness a brief squeeze, however factors to $2.7k as key resistance.
Ethereum traded to close $2,750 on Monday, Oct. 21, rising amid broader positive factors for the crypto market as Bitcoin shot previous $69,000. Nonetheless, with BTC dipping, the ETH worth adopted go well with and examined help close to $2,600 on Oct. 22.
The worth of Ethereum has returned above $2,620, and a CryptoQuant analyst says the highest altcoin might see a brief squeeze state of affairs. In line with Shayan B, this outlook outcomes from the rising leverage. If the bulls handle to interrupt out above the availability wall round $2.7k, then ETH worth might rise additional.
Ethereum worth outlook
Presently, the market appears bearish on ether worth prospects, which suggests many merchants anticipated a draw back continuation. However with “leverage at regarding ranges,” a brief squeeze would imply surprising worth surge and main liquidations.
ETH would notch positive factors in such a case.
“With leverage at regarding ranges, the futures market is now thought of overheated. This leaves Ethereum weak to a possible short-squeeze occasion. In such a state of affairs, if ETH’s worth rises unexpectedly, merchants with brief positions may very well be compelled to cowl their positions by shopping for again ETH, creating an impulsive worth spike,” the analyst noted.
The important thing degree nonetheless stays on the 100-day transferring common close to $2,700. This space presents a notable resistance space that bulls might have to beat to see additional positive factors.
Ethereum Faces Brief-Squeeze Danger: Rising Leverage and Key Resistance at $2.7K
“With leverage at regarding ranges, the futures market is now thought of overheated. This leaves Ethereum weak to a possible short-squeeze occasion.” – By @ShayanBTC7
👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
Information from Coinglass confirmed complete 24-hour crypto liquidations stood at over $165 million.
Most of this, about 75% have been lengthy positions rekt over the previous 24 hours at $129 million. Shorts accounted for about $36 million. Ethereum, information confirmed longs accounted for $36 million of the overall $39 million liquidated over the previous 24 hours.
ETH worth reached its year-to-date peak of $4,070 in March.