Ethereum

bullish

Daily

<p>Ethereum’s recent rejection at the key resistance region of the 100-day MA level suggests a false breakout and a potential short-term correction.</p>
<p>However, a break above this threshold could trigger a bullish surge toward $3K. The price is expected to consolidate, with $2.4K as a critical support level.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>Ethereum has recently seen a notable increase in demand and bullish momentum, causing the asset to test and slightly breach the decisive resistance region formed by the 100-day moving average at $2.7K and the inverted head and shoulders neckline at $2.6K. Despite this brief breach, ETH quickly faced rejection due to significant supply at this level, causing the price to plummet below the 100-day MA.</p>
<p>This false breakout hints at a bull trap, signalling a potential period of descending consolidation correction in the short term. Ethereum is trading between the 100-day MA and the $2.5K support region, with a breakout above this resistance likely to signal a sustained bullish trend.<a href="https://cryptopotato.com/wp-content/uploads/2024/10/ETH-D-6-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour chart, Ethereum surged toward the critical resistance zone bounded by the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci retracement levels, representing a significant barrier for buyers. A breakout above this range could lead to massive short liquidations and a further price rally. However, the recent price action indicates intense selling pressure near this area, resulting in a rejection and a halt in bullish momentum.</p>
<p>If this selling pressure persists, Ethereum will likely enter a period of mid-term consolidation correction, targeting the lower boundary of the flag pattern around the $2.4K threshold. Conversely, if buying pressure resurges and the price breaks through the $2.7K resistance, the next target will likely be the $3K substantial resistance, which also coincides with the 200-day moving average.</p>
<p><a href="https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-367329" src="https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/10/ETH-4H-7-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h2 id="onchain-analysis">Onchain Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<p>The Estimated Leverage Ratio is an essential metric for gauging the risk participants in the futures market are willing to take by using leverage. A rising ELR typically signals an increase in leveraged positions, which can amplify market moves in either direction.</p>
<p>The metric has increased over the last few months, coinciding with an overall price downtrend. This suggests that more traders are opening high-leverage short positions, betting on further price declines for Ethereum. The market appears bearish on ETH’s upcoming prospects, with many expecting further downside.</p>
<p>With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.</p>
<p>In such a scenario, if ETH rises unexpectedly, traders with short positions could be forced to cover their positions by buying back ETH, creating an impulsive price spike. The 100-day moving average at $2.7K is a key resistance level. A breakout above this level would likely lead to massive short liquidations, increasing ETH’s price.<a href="https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-367331" src="https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-scaled.jpg" alt="" width="2560" height="1440" srcset="https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-300x169.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-1024x576.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-768x432.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-1536x864.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-2048x1152.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/10/Ethereum-Estimated-Leverage-Ratio-All-Exchanges-50x28.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ethereum-price-analysis-eths-rejection-at-2-7k-could-spell-further-trouble/" rel="noopener noreferrer nofollow">Ethereum Price Analysis: ETH’s Rejection at $2.7K Could Spell Further Trouble</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ethereum Price Analysis: ETH’s Rejection at $2.7K Could Spell Further Trouble

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