- Ethereum has a bullish structure on the weekly chart.
- The two main range resistance level overheads match well with the liquidation heatmap.
It took more than a month for Ethereum (ETH) bulls to break through the resistance at $2.4,000. News of the approval of a Bitcoin (BTC) spot ETF sent Ethereum to a local high of $2,700, but was rejected from there.
This price action gave us an idea of the range within which AMBCrypto is explored here. Meanwhile, the weekly market structure remained strong, with lows higher around the $2.1k level.
Resistance at $2,370 could reject ETH strength.
The one-week chart shows that the $2.5,000 to $2,700 area has been resistance since May 2022. It was a support zone in March 2022, but was later broken through. For the past two weeks it has served as a supply zone.
Source: ETH/USDT on TradingView
Ethereum’s range (purple) has expanded from $2.1k to $2.6k, with a mid-range of $2370.
The low end of the range saw candlestick below $2.2,000 on the daily chart venture, but it quickly rose. Another reaction has emerged over the past few days.
Until you get above $2.4k, the mid-range can be considered a range in itself. Price action since then has shown that extending the top range makes sense.
Therefore, the $2.4k and $2.6k levels are likely to oppose ETH upside.
RSI was below neutral 50, reflecting bearish momentum, but that could change. On the other hand, OBV fell to its peak in December.
OBV seemed to move within a range, as did price. This means that buyers and sellers have been equally strong over the past month.
A liquidation heat map may provide further clues.
Source: Hiblock
Daily price action suggested a bounce to $2.4,000 is likely. It also highlighted that the $2150-$2200 region is a solid demand zone.
Hyblock’s data agreed with both inferences that AMBCrypto drew from its price action charts.
Is your portfolio green? Check out our ETH Profit Calculator
Liquidation levels in the $2420-$2450 region are estimated to be around $3 billion.
Further north, in the $2,620-$2,660 and $2,750-$2,800 regions, clearing levels are estimated at $3.8 billion and $5 billion, respectively. This meant that swing traders could book profits at this level.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.