Ethereum has shown remarkable resilience in the face of recent market volatility. The second-largest cryptocurrency has successfully defended its critical support level between $2,380 and $2,460, despite headwinds from Trump’s trade policies and higher inflation data.
Technical Analysis Points to Bullish Momentum
Multiple technical indicators suggest ETH could be preparing for an upward move. The formation of a double bottom pattern on the 5-day chart signals strong buyer interest. ETH’s price structure maintains its multi-year uptrend, reinforcing bullish sentiment.
The $2,800 level emerges as the immediate resistance to watch. A breakthrough here could trigger a rally toward the $3,000 psychological barrier. The weekly chart shows a potential triple-bottom formation, suggesting accumulation at current levels.
Market Sentiment and Short Squeeze Potential
ETH’s underperformance compared to peers like Solana and XRP has created an interesting market dynamic. Short positions have increased by 500% since November 2021. This extreme bearish positioning could fuel a powerful short squeeze.
Current price action at $2,740 shows growing momentum. A successful break above $2,800 could force short-sellers to cover their positions. This would create additional buying pressure and accelerate the move toward $3,000.
Long-term Outlook
The $4,000 level remains a crucial milestone for ETH’s long-term trajectory. Breaking this resistance could open the path to new all-time highs beyond $4,878. The current market structure suggests accumulation at these levels.
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Tags: Ethereum, Technical Analysis, Cryptocurrency Markets, Short Squeeze, Price Analysis
Source: NewsBTC