Ethereum has seen a great amount of the liquidity drain across multiple price levels setting the lower $2,100 as the important support.
Losing the $2,100 level may prompt further testing of bear territory, whereas reclaiming the $2,400-$2,410 area may signal a possible reversal of the price trend.
The $2,600-$2,700 has been viewed as a major resistance level whereby, in case of a bullish breakout, could mean more positivity and push the Ethereum price up.
ETH has been through a big loss of liquidity at multiple tiers with focus being on the critical $2,100 support level. The currency is currently trading in a volatile range, and as traders watch the market, the next move will determine the short-term price action. The market situation in the current period implies that a drop below $2,100 would signal the beginning of the next phase of support testing. However, if they can regain $2,400,$2,410 it could be a sign of change and can push Ethereum prices to $2,600 or even $2,700.
Liquidity Drained Across Multiple Levels
Lately, the Ethereum volume has been flowing at several levels, and traders are now getting worried about the next support zones. When such liquidations take place the market is automatically pulled towards testing the lower supports. There is a significant level of support at $2,100 that traders use to gauge the performance of the currency. If Ethereum goes below this level, it could lead to a deeper correction and require the market to retest further downside movements.
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The $2,100 mark is not only a psychological level but also technical support that Ethereum has consistently held in previous declines in the market. The loss of this level can lead to more declines which could bring a steeper correction. According to the market analysts it is imperative to sustain this support to prevent further bearish outlooks. Many traders have placed their stop loss orders close to this level, if it breaks then it might lead to more selling pressure.
A Path to Positivity Above $2,400
On the positive side, the $2,400-$2,410 area’s recovery would relieve the pressure on Ethereum. If the price is managed to recover to this level and sustain it, then it might be a sign of a reversal as more buyers join the trend. Above $2,600-$2700 level has been identified by the traders as the resistance level that would possibly cause the higher prices if regained. An upward movement towards these levels is likely to reflect renewed optimism within the market.
The post $ETH Liquidity Drained: Why $2,100 Support Is the Critical Next Target appeared first on Crypto News Land.
