Ethereum’s price action has been a topic of interest for traders recently, as it appeared to be moving within a range and being influenced by liquidity pockets. The levels of $2,570 and $2,450 have caught the attention of lower timeframe traders, as they could potentially offer trading opportunities.
At the time of writing, Ethereum was trading below the $2,550 level after experiencing a dip below it over the weekend. The $2,480 level was predicted to act as support due to the presence of liquidation levels in that range. True to this prediction, ETH dropped to $2,475 before bouncing back above $2,500. The increase in taker sell volume indicated a dominance of sellers in the market.
On the flip side, there were signs of whales re-entering the market, as evidenced by a brief spike in buying activity and negative netflows. This could potentially signal a trend reversal in the making.
Analyzing Ethereum’s price action further, technical analyst RektProof suggested that ETH could be drawn towards the liquidity around $2,462 before rallying to $2,560. This analysis was based on the price movements of the past ten days, which saw Ethereum briefly surging above $2,745 before experiencing a rapid decline.
The recent attempts to rally above the $2,550 level were met with rejection, indicating a struggle to break out of the weekend range. The liquidation heatmap revealed clusters of liquidity at $2,450 and $2,570, with the latter level yet to be swept. A potential minor bounce towards or just above $2,570 could be on the cards.
Looking ahead, the magnetic zone below $2,500 could be the next target for Ethereum. The weekend range is likely to persist in the near term, and a drop to $2,450 could present a buying opportunity with targets set at the local highs of $2,800.
It’s important to note that the information provided is not financial advice and solely reflects the writer’s opinion on the market dynamics. Stay tuned for more updates on Ethereum’s price action and market trends.