Ethereum (ETH) is currently facing a crucial level in its price action, indicating a make-or-break situation for the altcoin. Expert technical analysis suggests that ETH is forming an ascending triangle pattern on the four-hour time frame. However, it is currently encountering resistance from the descending trendline and appears to be heading towards the pattern’s support level.
If ETH fails to hold the $2,680 level and closes a four-hour candle below $2,670, there is a strong possibility that it could drop by 4.5% to reach the $2,560 level in the near future. Additionally, ETH is trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, signaling a downtrend that may continue.
On the liquidation front, intraday traders have opened $74 million worth of long positions at the over-leveraged $2,657 level, which are at risk of liquidation if the price falls below this level. Conversely, traders holding long positions at the $2,730 level have $275 million worth of positions at risk of liquidation if the price drops further.
Currently, ETH is trading near the $2,685 level with a slight price drop of 0.55% in the past 24 hours. However, trading volume has decreased by 9%, indicating reduced participation from traders and investors.
In conclusion, Ethereum is at a critical juncture, with key support and resistance levels to watch closely. Traders should exercise caution and closely monitor price action to make informed decisions in this volatile market. Stay updated with the latest news, analysis, and trends in the crypto world to stay ahead of the curve.