An analyst at CryptoQuant has recently pointed out that Ether (ETH) might be on the verge of a rally, based on data from the cryptocurrency’s futures market. The analyst, Shayan, highlighted a significant liquidation event in the ETH market, which historically has been followed by price rallies as spot buying pressure takes over.
In recent times, Ether experienced a downward trend, leading to a loss of almost 34% of its value. From a high of $3,329, Ether plummeted to $2,197, causing concerns among investors about further drops. However, a surge in buying activities around the $2,100 mark helped the asset bounce back to around $2,500, where it currently stands at $2,623.
Despite the recovery seen in Ether’s price, data from the futures market indicates a potential for a more significant rally. The recent liquidation of long positions in the futures market hints at a market cooling off, with leveraged positions being cleared out. This, coupled with growing spot buying pressure, could spark renewed interest in the market and lead to a potential resurgence in Ether’s value.
While the analyst’s analysis leans towards a bullish reversal for Ether, the daily and hourly charts of the asset present a different picture. Ether has shown resilience near the $2,100 support level, with strong demand at $2,000, reflecting confidence in its long-term prospects. However, it faces resistance at the $2,800 mark, which was previously a support level during a recent market plunge.
The future of Ether in the cryptocurrency market remains uncertain, with conflicting signals from different sources. While the futures market data suggests a potential rally, the technical charts indicate a struggle to overcome key resistance levels. Investors and traders in the crypto space will need to monitor developments closely to make informed decisions regarding Ether and its price movements in the coming days.
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