Ethereum’s Critical Level: $2,800 Crucial Support
Ethereum (ETH) is currently hovering at a critical level that could determine its immediate course, with traders closely monitoring $2,800. With a $30 billion 24-hour trading volume, ETH is currently trading at over $3,085. The price has increased 6.39% over the previous week and 9.03% in the last day.
$ETH is sitting right on $2,800, one of the biggest support zones on the chart. Hold it → room back to $3,300 and even $3,900. Lose it → volatility at $2,500 HVN, then a real shot at $2,300.
Crypto analyst CryptosRus
After recent declines, ETH has recovered, but it is still around this crucial area. Although a definite breakout is still required, price charts display a bullish candle on the daily close. The higher low trendline is being watched by traders in hopes of confirming a move toward $3,700. Currently, activity is being driven by short-term setups on shorter timeframes.
Ethereum Faces Volatility Risk as Weak Positions Clear Out
According to CryptoOnchain, data from Binance points to Ethereum‘s leverage ratio being at an all-time high of 0.57. This means that a lot of traders are using borrowed funds. Concurrently, open interest has decreased to $6.6 billion. This implies that a large amount of froth has already been flushed out. Interestingly, this results in a mixed setup. While the decline in open interest indicates that many weaker positions may have already been cleared, high leverage raises risk. Traders caution that if the market reacts sharply close to current levels, the current build-up may result in abrupt price movements.
ETH Charts Show Key Patterns for Traders
Around $2,880 is the next lower support level. In the event that the asset finds buyers and stays there, traders might search for long entries. According to a recent analysis published by CryptoPotato, ETH is forming an inverse head-and-shoulders and a bullish wedge on longer timeframes. Traders who anticipate a breakout above $4,500 are keeping an eye on these patterns.
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