Ethereum (ETH) faced a significant downturn at the beginning of the past week, with its price plummeting to $2,112 on August 5, marking the largest market slump of the year. However, the digital asset has since staged a modest recovery, reclaiming the crucial $2,600 level and showing signs of aiming for the $3,000 milestone once again. Over the last seven days, Ethereum has seen an 8% increase, hinting at the possibility of a more sustained bullish trend in the future.
Market analytics firm CryptoQuant recently released a report on ETH’s price action, highlighting a substantial liquidation of long perpetual positions on the futures market during last week’s crash. The firm suggested that such significant liquidation events in sustained bullish markets often pave the way for major price rallies as the futures market stabilizes and spot buying pressure kicks in. The recent cascade of long liquidations, reaching levels not seen since November 2022, indicates a cooling of the futures market, potentially setting the stage for renewed interest and demand, boosting Ethereum’s price in the longer term.
Crypto analyst Caleb Franzen shared a similar bullish prediction for Ethereum’s price on social media, suggesting that breaching the $2,725 level could signal a strong move higher for ETH. Franzen’s analysis of the 4-hour candles and market structure revealed a series of higher lows and bullish supertrend indicators, adding to the optimism surrounding Ethereum’s future performance. Despite currently trading at $2,645, Ethereum faces its first resistance on the ETH/USDT weekly chart at the $2,700 level, proving to be a significant hurdle for the cryptocurrency to overcome in recent days.
Ethereum’s recent price action and market recovery indicate the potential for a bullish trend in the future. With significant liquidation events in the futures market and expert predictions pointing towards a positive outlook for ETH’s price, investors and traders remain hopeful for a price surge above previous all-time highs. As Ethereum continues to face resistance levels, overcoming these hurdles could set the stage for renewed interest and demand, driving the cryptocurrency towards new milestones and potential price surges.
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