Ethereum price: The analyst suggests that it may be a short-term squeeze
Ethereum price traded around $2,600 as the crypto took a short break. CryptoQuant analyst ETH may witness a short squeeze but points to $2.7k as key resistance.
Ethereum traded near $2,750 on Monday, October 21, amid broader gains in the crypto market as Bitcoin surpassed $69,000. However, with BTC dipping, the price of ETH followed and tested support near $2,600 on October 22.
The price of Ethereum has returned above $2,620, and the CryptoQuant analyst said that the top altcoin could see a short squeeze. According to Shane B., this perspective pays off. If the bulls can climb above the supply wall to $2.7k, the price of ETH may increase further.
Ethereum Price View
At the moment, the market seems to bear on Ether's price expectations, which means that many traders expect it to continue on the downside. But a short squeeze on the “advantage on standards” means unexpected price increases and high liquidity.
ETH will make a profit in such a situation.
“With the gains on the levels, the futures market is now considered hot. This makes Ethereum vulnerable to a short-squeeze event. In this case, if the price of ETH suddenly increases, traders with short positions may be forced to cover their positions by buying ETH, which may cause a sudden price increase,” the analyst said. It is mentioned.
The key level, however, remains at the 100-day moving average around $2,700. This area represents a significant area of resistance that bulls can control to see further gains.
Ethereum Faces Short-Term Compression Risk: Rising Capability and Key Resistance at $2.7K
“With the benefit on the levels, the futures market is considered hot right now. This makes Ethereum vulnerable to a short-squeeze event. – by @ShayanBTC7
👇 pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
Data from Coinglass Total 24-hour crypto liquidity stands at over $165 million.
This majority, about 75% was rekt long positions in the past 24 at $129 million. Shorts raised about $36 million. Looking at Ethereum, the data shows that it accounted for $36 million of the total of $39 million that was poured in in the last 24 hours.
ETH price hit a year-to-date high of $4,070 in March.
