- Ethereum bulls find strong support just below $2900.
- If the bullish sentiment continues to strengthen, an advance towards $3,500 could begin.
Ethereum (ETH) surpassed the psychological resistance of $3,000 on February 25th. Although it closed the daily trading session on the 20th at $3,014, ETH fell to the $2,900 level over the next few days.
NFT sales on the Ethereum network recently hit a 10-month high. AMBCrypto reported that sales reached $400 million.
On-chain analysis highlighted the asset accumulation with $2.4 billion worth of ETH flowing out of exchanges in 2024.
The range breakthrough has not yet been delayed.
Source: ETH/USDT on TradingView
Highlighted in purple is the range that ETH showed in the second half of January. Expanded from $2100 to 2600. On the lower period chart, two demand zones are identified at $2500 and $2650.
Prices have not yet been retested in either region.
The market structure and momentum on the 3-day chart were solidly bullish. Rising OBV indicates large purchases. Together, they showed that the price of Ethereum is expected to continue rising.
A move beyond the psychological resistance level of $3000 would be important. This could heighten the bullish enthusiasm already present in the market.
The next highest period-resistance level was $3,580, and ETH could break into this area before a significant retracement occurs.
The clearing heatmap shows three main areas of concern:
Source: Hiblock
According to the three-month look-back period liquidation heatmap, it is estimated that there are several levels in the $3050-$3110 region with liquidations in the $2-4 billion range.
The $3050 level has already been tested, but further liquidity remains until $3100.
Further north, the $3,190-$3,225 region is estimated to have various clearing levels ranging from $1.4 billion to $2.3 billion. Likewise, the liquidation level of $3460-$3520 was in the $2 billion area.
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Therefore, this area will be a key resistance area where price can be lured before a downtrend reversal.
In terms of support, the $2800-$2880 area also provided significant liquidity. Prices are likely to rebound once this area is tested again.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.