Ethereum Shows Strong Bullish Sentiment as Price Charts Indicate Ideal Buying Opportunity
Ethereum, the world's second-largest cryptocurrency by market capitalization, has displayed a strong bullish sentiment on the price charts recently. After a minor pullback from $2867 to $2719 between February 15th and 17th, Ethereum is now showing signs of a potential retest of the range highs, presenting an ideal buying opportunity for investors.
The breakout past the range highs at $2.6k, a level that the bulls struggled to breach over the past six weeks, was a significant development for Ethereum. This breakout, combined with the steady rise in active addresses in recent weeks, suggests that a long-term uptrend may be beginning. However, retracements are not ruled out, and two demand zones have been identified.
Despite these retracements, the data also suggests that a move toward $2900 is imminent for Ethereum. The H12 chart of Ethereum reveals a clear uptrend in progress, with the market structure displaying a firmly bullish pattern. Furthermore, the RSI, an indicator of overbought or oversold conditions, was at 73 at the time of writing and has been within the overbought territory for the past six days. While this does not necessarily indicate a deep pullback, it does suggest that prices may be overextended and could require some time to cool down.
Meanwhile, the OBV (On-Balance Volume) continues to rally higher, propelled by buying volume. This steady demand and momentum indicate that it is only a matter of time before Ethereum prices climb to $3000 and higher. Resistance is expected at the $3250 and $3580 levels beyond $3k.
In addition, AMBCrypto's analysis of the liquidation levels data from Hyblock reveals some interesting insights. Despite the minor pullback over the past couple of days, the Cumulative Liq Levels Delta remains positive. This indicates that there are more long liquidation levels, suggesting a bullish sentiment. However, it is worth noting that these liquidation clusters are at $2550 and just below the $2700 mark. On the other hand, a substantial $179 million short liquidation level is present at $2858. This implies that a move to the $2850-$2900 region is likely, followed by another move higher. The long liquidations, despite being more numerous, are more spread out.
Overall, Ethereum's recent price movement and market indicators point towards a strong bullish sentiment. With a potential retest of the range highs on the horizon, investors may find an ideal buying opportunity in the current market conditions.
Analyst comment
Positive news: Ethereum showed strong bullish sentiment on the price charts and a retest of the range highs would provide an ideal buying opportunity.
As an analyst, it is expected that the market will continue to rise, with a possible move towards $3000 and higher. The market structure is firmly bullish, and the steady demand and momentum suggest that Ethereum prices will climb. There are significant resistances at $3250 and $3580. Liquidation data indicates that there are more long liquidation levels, but they are more spread out, suggesting a move to the $2850-$2900 region followed by another move higher.
