The weekend range seemed set to continue for Ethereum, and a drop below $2,500 could come within this week.
- Ethereum’s price action appeared to be a range within a range and moved by liquidity pockets $2,570 and $2,450 levels were the ones that lower timeframe traders would be interested in
Ethereum [ETH], at press time, seemed to be trading below the $2,550-level once again after falling below it over the weekend and retesting it as resistance. In fact, in a recent report, AMBCrypto noted that the $2,480-level was likely to be tested as support due to the cluster of liquidation levels there.
This prediction has come true since, with ETH falling to $2,475 on Monday morning before bouncing above $2,500 by press time. Heavy capital outflows and a spike in taker sell volume meant sellers were dominant.
On the other hand, whales appeared to be returning to the market. There was a brief increase in buying, which resulted in negative netflows. Could this be an early sign of a trend reversal?
Assessing Ethereum’s price action
Source: RektProof on X
In a post on X, technical analyst RektProof observed that ETH could be drawn towards the liquidity around $2,462, before rallying to $2,560. This idea was based on the price action of the past ten days, which saw ETH deviate above $2,745. This surge was followed by a quick slump.
The idea was that these moves were driven by the constant search for liquidity and liquidation levels. As the analyst and AMBCrypto suggested, a move below $2,480 did occur, followed by a bounce to $2,565.
At press time, the attempted rally above the short-term local high at $2,550 was faced with rejection. A sustained move towards its previous week’s high did not materialize, and Ethereum continued to trade within the weekend range.
Source: Coinglass
The liquidation heatmap revealed that there was a cluster of liquidity at $2,450. A build-up of liquidation levels at $2,570 was also seen. The latter level has not been swept, and we could see a minor bounce to or just above $2,570.
The magnetic zone below $2,500 would be the next target. The weekend range for Ethereum seemed likely to continue over the week. A drop to $2,450 would offer a buying opportunity, targeting the local highs at $2,800.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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