Ethereum eyes $2.9K – Traders, should you expect the rally to cool down?
- Ethereum has rallied strongly, beating the five-month downtrend in type
- The biggest altcoin’s momentum spurred the market right into a bullish frenzy
Ethereum [ETH] led the altcoin surge, rallying 47% in 5 days. Throughout this time, BTC was up 7.9%. Predictably, this noticed the Bitcoin Dominance drop from 65.36% to 62.38% in six days. The altcoin market added $232 billion throughout the identical interval.
The Pectra improve was attracting extra than simply retail traders. It additionally witnessed promoting stress with whale deposits into centralized exchanges.
Ethereum nears the 50% retracement level- breakout, or…
Supply: ETH/USDT on TradingView
The OBV had been in a gentle downtrend all year long. That modified over the previous month, and the pattern reversal on the OBV was an indication that consumers have been dominant. The CMF agreed with this discovering.
Its studying was at +0.25, indicating heavy capital inflows to the market. The MFY was additionally rising, to point out bullish momentum and capital movement. Nevertheless, the indicator didn’t kind a bearish divergence on the 1-day chart but.
Due to this fact, there was extra room for Ethereum to rally. The Fibonacci ranges plotted based mostly on the 2025 downtrend confirmed that the 50% degree at $2,774 was nigh.
The liquidation map highlighted the shortage of quick liquidations overhead. Excessive leverage lengthy positions have been open, and a drop to $2.4k and $2.5k would wipe out many of those positions.
This meant merchants needs to be cautious of a southward liquidity hunt.
The 6-month liquidation heatmap confirmed the $2.9k area was a robust magnetic zone. ETH was headed to this degree in the end, however a breakout past it was not a assure.
Bullish Bitcoin [BTC] and macroeconomic situations may have to line up with an ETH transfer to $2.9k to catalyze a transfer past the $3k psychological resistance.
The 1-month liquidation heatmap reveals Ethereum consolidating round $1.8K in early Could, triggering quick liquidations at $1.9K earlier than pushing greater. The same however much less intense sample has emerged in latest days.
Liquidity has constructed up close to the $2.7K zone, with ETH already claiming a few of it. Over the approaching days or even weeks, additional consolidation under $2.8K is feasible earlier than a rally.
In the meantime, merchants and traders could contemplate reserving earnings and making ready for a possible retracement, as whale promoting exercise has elevated just lately.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
