- Ethereum worth traded close to $2,600 as crypto skilled a quick lull.
- A CryptoQuant analyst says ETH might witness a brief squeeze, however points to $2.7k as key resistance.
Ethereum traded to close to $2,750 on Monday, Oct. 21, rising amid broader features for the crypto market as Bitcoin shot previous $69,000. However, 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 situation. According to Shayan B, this outlook outcomes from the rising leverage. If the bulls handle to get away above the provision wall round $2.7k, then ETH worth might rise additional.
Ethereum worth outlook
Currently, the market appears bearish on ether worth prospects, which suggests many merchants anticipated a draw back continuation. But with “leverage at concerning levels,” a brief squeeze would imply surprising worth surge and main liquidations.
ETH would notch features in such a case.
“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event. In such a scenario, if ETH’s price rises unexpectedly, traders with short positions could be forced to cover their positions by buying back ETH, creating an impulsive price spike,” the analyst noted.
The key degree nevertheless stays on the 100-day shifting common close to $2,700. This space presents a notable resistance space that bulls might have to conquer to see additional features.
Ethereum Faces Short-Squeeze Risk: Rising Leverage and Key Resistance at $2.7K
“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.” – By @ShayanBTC7
👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
Data from Coinglass confirmed whole 24-hour crypto liquidations stood at over $165 million.
Most of this, about 75% had been lengthy positions rekt over the previous 24 hours at $129 million. Shorts accounted for about $36 million. Looking at 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.
