🔥🔥🔥 Ethereum ($ETH ) Price Eyes $2,600, Could Trigger $700 Million Short Squeeze
BeInCrypto examines the factors that could push Ethereum's value higher and how traders might capitalize on its price movement.
Ethereum Targets Recovery, Shorts Under Pressure
- With "Uptober" – a historically bullish month for crypto – in focus, analysts initially predicted Ethereum (ETH) could reach $3,000. However, after a shaky start to the month, ETH dropped from $2,600 to $2,360, leading to widespread liquidation of long positions.
- Recent data suggests that the tide may be turning, putting shorts at risk. A key indicator supporting this shift is Ethereum’s Coin Holding Time, which tracks how long coins have been held without being sold or transacted. Typically, a drop in holding time signals bearish sentiment, as it indicates more holders are selling their assets. This often leads to downward price pressure.
- However, in this case, the Coin Holding Time has surged by 58% during Ethereum’s price drop. This indicates that long-term holders are accumulating or holding onto their ETH despite the decline, a bullish sign for the asset.
- This accumulation could help Ethereum recover losses, with a potential rebound to $2,600. A rise to $2,644 could trigger over $700 million in short liquidations, potentially leading to a short squeeze as traders betting on a decline close their positions.
ETH Price Prediction: Bull Market Could Return
- Despite the recent price drop, Ethereum bulls seem to be holding their ground, with the swing lows forming an ascending trendline. As long as this uptrend remains intact, ETH could be poised for a rebound.
- Ethereum needs significant buying pressure to recover, potentially reaching $2,450 and even $2,690 with increased momentum, which could lead to a bull market and a target of $3,202. However, a break below the trendline could invalidate this outlook, possibly dropping the price below $2,300 to $2,295.
Source - beincrypto.com
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