Ether is at risk of retesting $1.7K as traders failed to break a key resistance zone
Ether (ETH) price may be at risk of a correction from the new year's intraday lows, especially if the bulls close above the daily shaman of $2,150 to $2,400.
Ether's price action continues to be driven by US and global macroeconomic events, with investors interested in risk assets during the US and Israel-Iran war. Data shows that with futures-oriented selling pressure above 1 billion dollars, the probability of Ether falling below $1,800 will increase.
Ether's main challenge is set at $2,400
Repeated declines near $2,150 continue to add to Ether's rallies, and the level has served as strong resistance seven times in the past two months. Although the high-high and high-low candles appear on the daily chart, the trend and resistance control the price action.
A break below the uptrend line could shift traders' focus to $1,900, where it is at an equally low level formed in the first week of March. Losing that level would introduce a broken structure, exposing the external liquidity pockets to Ether's annual low of $1,736.
Although it has recently decreased, the short position has not increased significantly. The liquidity heatmap shows volatility in the 10% range from current prices ($1,845–$2,255), with around $2.4 billion in long liquidity to the lower bound (1,845) and $1.7 billion in short liquidity to the upper bound ($2,255).
This distortion indicates that downside liquidity is large, but short positions are still not crowded, even though the price is weakening.
The lack of a large short-term build suggests passive positioning rather than guilt-driven selling. The price continues to squeeze below the resistance, with buyers unable to regain control above the key barrier of $2,150.
RELATED: Ethereum Bulls Must Hold $2K: Volatility Metric Hints ‘Strong' On Next Move
ETH derivatives will rise after continued macro volatility
ETH futures sold off following US President Donald Trump's comments that instead of calming markets, tensions with Iran escalated. Trump has indicated that military action will continue until the end of April and warned that it could affect Iran's energy plants.
Following the development, crypto analyst Darkfost reported that the volume of Ether futures traded on Binance increased by $1 billion in one hour.
Despite the increase in selling, ETH continues to trade below the $2,150 resistance level. A sustained move above $2,150 will pave the way to $2,400, where resistance is relatively thin.
If the price clears $2,400, the next expansion zone is near $2,800, where little trading activity has occurred in the past six months.
For now, ETH is range-bound, covered by repeated resistance near $2,150, with $1,900 acting as a nearby liquidity pillar, which could extend the bear breakout.
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