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- Ethereum showed strong strength on the price chart.
- A retest of the range high would be an ideal buying opportunity.
Ethereum (ETH) fell slightly from $2867 to $2719 from February 15th to 17th.
This comes after a strong break above the range high of $2.6,000, a level the bulls have struggled to break over the past six weeks.
The steady increase in active addresses in recent weeks suggests the beginning of a long-term upward trend, but this does not rule out a retracement.
Two demand zones were identified, but the data also suggested that a move to $2900 was imminent.
Measure market conditions
Source: ETH/USDT on TradingView
The Ethereum H12 chart showed a clear upward trend in progress. The market structure was resolutely optimistic. A decline below $2472 would be needed to reverse the structure to bearish.
RSI was at 73 at press time and has been within overbought territory for the past six days.
This doesn’t necessarily require a sharp decline, but it does show that prices have likely risen excessively and may need time to cool down.
Meanwhile, OBV continued its upward trend as the buying trend moved north.
Steady demand and momentum indicate that it is only a matter of time before the price of Ethereum rises above $3000. Above $3,000, the $3,250 and $3,580 levels were significant resistance.
Short sellers may soon face liquidation
Source: Hiblock
AMBCrypto also analyzed Hyblock’s liquidation level data.
Notably, despite the slight decline over the past few days, cumulative Liq level deltas have remained positive. This shows that there is a longer liquidation level.
How much is 1,10,100 ETH worth today?
However, the liquidation cluster was at $2550, just below the $2700 mark. Meanwhile, the short-term liquidation level of $179 million is $2,858 (blue).
Therefore, a move towards the $2850-$2900 region is likely. Another rally could follow as it spreads further, despite more long-term liquidations.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.