$ETH
Is ETH in Danger of Falling to $3K or Will the Bulls Wake Up? (Ethereum Price Analysis)
Ethereum’s price has landed on a decisive and substantial support region following a brief consolidation correction stage, with potential for a bullish reversal.
However, if Ethereum sellers breach this pivot, a cascade in the market is likely.
Ethereum’s price has experienced heightened selling pressure near the $4K mark, leading to a significant decline. This likely stems from participants’ aggressive interest in opening short positions near this pivotal level. Analyzing the potential liquidation levels is crucial for determining the mid-term price targets.
As the chart demonstrates, a significant amount of liquidity resides above the crucial $3.9K mark, potentially representing buy-stop orders from notable short positions around this critical juncture. This liquidity region is likely to be the main target for buyers if demand returns to the market and the price experiences a bullish reversal near the $3K threshold.
Reaching this crucial liquidity range would likely lead to increased market volatility and potentially trigger a short-squeeze event, where short positions are forced to cover, driving the price higher. Nevertheless, if the selling pressure continues and Ethereum fails to reclaim higher levels, the price may continue to consolidate or decline.