According to U.Today, Ethereum is demonstrating its potential as rumors circulate about the preapproval of an Ethereum Exchange-Traded Fund (ETF). The cryptocurrency's price is preparing for a swing towards or above the $4,000 mark, although its full strength is yet to be revealed. Ethereum has recently been on an upward trend, breaking through the $3,900 barrier. At present, Ethereum is trading around $3,898, marking a 1.92% gain. This surge is backed by robust trading volumes.
Technical indicators suggest further upward movement. The 50-day Exponential Moving Average (EMA) is near $3,225, while the 100-day EMA is close to $3,175. Both these moving averages have offered strong support and confirmed the current trend. Additionally, the Relative Strength Index (RSI) stands at 72, indicating that Ethereum is slightly overbought. However, this is not a critical concern, and the asset could continue to grow even if slightly overheated.
Two significant price targets have emerged for Ethereum. The immediate level appears to be the psychological $4,000 mark. Anything below this would suggest a prevailing bearish sentiment. This could likely attract more buyers, pushing the price higher and liquidating a substantial amount of short orders.
Regarding the liquidation heatmap, there was a significant cumulative long liquidation leverage down to $3,200. This implies that there were open longs worth $3 billion, which could potentially trigger a massive sell-off in the event of liquidation. If the price of Ethereum, the second-largest cryptocurrency, surges, more than $1 billion in short orders could close, causing a squeeze and driving bears away.