Critical days in Ethereum (ETH): Risk increases in futures

As Ethereum (ETH) rapidly gains strength against Bitcoin, futures risks are also increasing.$BTC

Ethereum (ETH) continues to rise under market pressure, with short positions exceeding $835 million expected to be liquidated when the price approaches $4,000. Ethereum’s price chart and liquidation map clearly reveal the high risks in the pair. In particular, short position liquidations concentrated between levels of $3,800 and $4,000 are noteworthy.

The liquidation map shows that short positions suddenly started to be liquidated at $4,000. If this level is broken, further liquidation may occur due to a domino effect. Ethereum$ETH

Against an uptrend, the size of these positions indicates increased leverage in the market. If the ETH price continues to rise, these liquidations could push the price above $4,000.

The daily price chart of Ethereum shows a clear uptrend. After breaking the $3,200 level, ETH has formed strong support levels around $3,500. This indicates a positive trend in the market. Key moving averages (50, 100, and 200 EMA) are supporting this rise by moving upwards. The rally that started after the consolidation breakout in early November took the ETH price to $3,800. Currently trading at $3,565, Ethereum is preparing to test the resistance level by approaching this level again.

Investors should watch two important levels closely in the short term. First, the resistance at $3,800 could be a determining factor in price action. If Ethereum breaks this level, it could see a strong rally towards $4,000. A large amount of short liquidation at this level could support the rally. On the other hand, a downside break of $3,300 could signal a correction.

Ethereum reaching $4,000 comes with increased volatility. If this level is breached, a significant squeeze could occur and the ETH price could potentially rise even higher. However, the market’s reaction to liquidation levels could lead to large price swings in either direction. Therefore, it will be important for investors to carefully manage their risk and take positions.