- Ethereum price traded near $2,600 as the cryptocurrency saw a brief lull.
- A CryptoQuant analyst says ETH could see a short squeeze, but points to $2.7K as key resistance.
Ethereum It traded at nearly $2,750 on Monday, October 21, rising amid broader gains for the cryptocurrency market as Bitcoin surpassed $69,000. However, as Bitcoin fell, Ethereum price followed suit and tested support near $2,600 on October 22.
Ethereum price is back above $2,620, and a CryptoQuant analyst says the top altcoins could see a short squeeze scenario. According to Cheyenne Bee, these expectations result from high leverage. If the bulls can break above the supply wall around $2.7K, the price of ETH could rise further.
Ethereum price forecast
Right now, the market looks bearish on the Ether price forecast, which means that many traders expect the downtrend to continue. But with “leverage at worrying levels,” a short squeeze means unexpected price spikes and major liquidations.
ETH will make gains in such a case.
“With leverage at worrying levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short squeeze event. In such a scenario, if the price of Ethereum rises unexpectedly, traders with short positions may be forced to cover Their positions by buying back Ethereum, leading to a sudden price spike.” male.
However, the key level remains at the 100-day moving average near $2,700. This area represents a noticeable area of resistance that the bulls may have to overcome to make further gains.
Ethereum Faces Short Squeeze Risk: High Leverage and Key Resistance at $2.7K
“With leverage at worrying levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short squeeze event.” – By @CheyenneBTC7
👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
Data from Quinglass It showed that total cryptocurrency liquidations over a 24-hour period amounted to more than $165 million.
Most of this, about 75%, were long positions resold in the last 24 hours worth $129 million. The value of the shorts was approximately $36 million. Looking at Ethereum, the data showed that long trades represented $36 million of the total $39 million liquidated in the past 24 hours.
The price of ETH reached its year-to-date peak of $4,070 in March.