Ethereum has gained close to 30% from the recent lows at $2.1k, but it has not been driven by high spot market demand.
The $2580-$2680 was a resistance zone that opposed the bulls in January and February earlier this year. Hence, it is imperative that the bulls flip this zone to support in the coming days.
The technical indicators were not encouraging. The daily RSI was at 37, showing firm downward momentum. The CMF was at -0.1 to show heavy capital flow out of the market. This subtracted from the recent price gains. The inference was that the price rally from the $2.1k lows was driven by the liquidity from late short-sellers, and not by strong demand. Hence, another move southward after this liquidity hunt could ensue.Since reaching Monday’s lows, ETH has bounced by 27%. Yet, the Open Interest crept upward from $7.07 billion to $7.79 billion, a meager increase compared to the price gains.AMBCrypto’s analysis of the liquidation levels chart revealed that long positions were starting to gain dominance.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.
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