Ethereum’s [ETH] recent price increase to $2,800 has created a buzz in the crypto markets, leading to a rush of short position liquidations.
In contrast, Bitcoin’s price has remained static, adding an element of unpredictability to the market.
This has resulted in the formation of a new $2,600 liquidation pool, further increasing the uncertainty of current price trends.
Ethereum’s price rose to nearly $2,800, triggering a wave of short position liquidations.
Short interest has seen a significant increase, indicating a strong bearish sentiment among traders.
If Ethereum fails to maintain its upward trajectory, the $2,600 level may serve as an important support zone.
This could lead to additional liquidations and market consolidation.
While Ethereum surged, Bitcoin’s price remained static, showing a divergence between the two cryptocurrencies.
Geopolitical factors such as tariffs implemented by the Trump administration have led investors to view Bitcoin as a safe-haven asset.
Ethereum, with its wide range of uses, is perceived as more susceptible to regulatory scrutiny.
Bitcoin ETFs have attracted over $40 billion in institutional investments, in contrast to Ethereum’s smaller inflows.
This has led to an increase in Bitcoin’s dominance and a decrease in Ethereum’s market share.
The Ethereum aggregated liquidations heatmap shows significant liquidation clusters near the $2,800 mark, in line with Ethereum’s recent price surge.
As the price increased, short positions were rapidly liquidated.
On the downside, the $2,600 liquidation pool remains a crucial support area to monitor.
Ethereum’s daily price chart indicates a bearish bias, with Ethereum trading at $2,670 after a 2.73% drop.
The RSI stood at 39.71, indicating potential buying interest if the trend continues.
However, the OBV at 25.81 million suggested limited buying momentum, leaving selling pressure in control.
The coin’s consolidation around $2,670 reflects market uncertainty.
A drop below this level could lead Ethereum to test the $2,600 liquidation pool, while a rebound would require a strong volume breach of the $2,800 resistance.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.