- Ethereum saw an $11.15 million liquidation after a price surge from $2,632.83 to $2,796.79.
- Ethereum’s price is consolidating at $2.8K resistance, with potential decline if it fails.
- A bearish “death cross” on moving averages suggests further price declines if resistance holds.
A recent high-stakes gamble in the Ethereum market ended in a massive $11.15 million liquidation. The trader, who sold their Ethereum holdings expecting a price drop, faced a dramatic reversal as the price of Ethereum (ETH) surged by 6.23%, from $2,632.83 to $2,796.79.
Ethereum’s Price Action and Consolidation
Ethereum has been grappling with the $2.8K level, the lower boundary of a multi-month wedge pattern. This level has acted as a significant resistance point, hinting that the current pullback might be nearing its conclusion.
After a recent retracement towards this resistance, the price has entered a consolidation phase. The low volatility observed near this resistance suggests that market demand has been insufficient to push the price higher.
This indicates that the pullback could be winding down. If Ethereum could face a decline towards the $2.1K support level if it continues to struggle with the $2.8K resistance.
This support area is critical; a failure to maintain this level could lead to further price drops. The persistent supply pressure at $2.8K indicates that a rejection at this point might be likely.
Read CRYPTONEWSLAND on
google news
Moving Averages and Bearish Signals
Adding to the bearish outlook, the 100-day moving average is approaching a crossover below the 200-day moving average, forming a “death cross.” This technical pattern is often viewed as a bearish signal.
The death cross chart pattern typically suggests that the price may face further declines if the $2.8K resistance holds. With Ethereum struggling at crucial resistance levels and bearish signals from moving averages, traders should stay cautious.
The next few weeks will determine whether Ethereum can overcome the resistance or it will slide towards lower support levels.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
