Ethereum ETH Faces Key Resistance, Potential Drop to $2,626
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Market Pressure Intensifies: Ethereum is currently trading at $3,095.28, reflecting a 2.3% drop over the past day, and despite a 4.5% gain in the past week, rejection at the key resistance zone of $3,349 to $3,548 is putting pressure on prices, potentially leading to further downside in the short term.
- Liquidation Risk Rising: According to data from Bitcoinsensus, the ETH liquidation heatmap indicates significant long liquidations in the $3,200 to $3,400 range, suggesting that many traders' high-leverage long positions are being wiped out, thereby increasing short-term downside risk.
- Support Levels to Watch: Technical analysis indicates that if ETH fails to reclaim the $3,171 support level, it may lead to further declines towards lower support levels at $2,626 and $2,258, with a potential extension down to $1,820, reflecting the fragility of market sentiment.
- Market Divergence Evident: The current market shows a clear divergence between bearish signals and potential bullish breakouts, where forced liquidations and failed resistance attempts could lead to further downside, while the validity of breakout patterns hinges on whether prices can hold above key support levels.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
