- Ethereum has a bullish structure on the weekly chart.
- The two key range resistance levels overhead align well with the liquidation heatmap.
Ethereum [ETH] It took more than a month for the bulls to break the resistance at the $2.4k mark. The Bitcoin [BTC] The spot ETF approval news took Ethereum to the local high at $2.7k, but was rejected from there.
This price action presented the idea of a range within a range, which AMBCrypto explores here. Meanwhile, the weekly market structure remained bullish, with the $2.1k level being the highest low.
The resistance at $2370 could turn away ETH bulls
The one-week chart showed that the zone from $2.5,000 to $2.7,000 was a resistance zone as of May 2022. This zone was a support zone in March 2022 but was later broken. It served as a supply area for the past two weeks.
Source: ETH/USDT on TradingView
The range (purple) for Ethereum stretched from $2.1k to $2.6k, with an average value of $2370.
At the lows of the range, the Candlewicks on the daily chart fell below $2.2k, but quickly bounced back higher. There has been such a reaction again in recent days.
Until the increase above $2.4k, the mid-range could be considered a range in its own right. The price action since then has shown that extending the range highs made sense.
Therefore, the $2.4k and $2.6k levels will likely counter ETH gains.
The RSI has been below neutral 50 to reflect bearish momentum, but this could change. On the other hand, OBV fell to December highs.
The OBV seemed to move within a certain range, as did the price. This meant that buyers and sellers were equally strong over the past month.
The liquidation heatmap could provide more clues
Source: Hyblok
The one-day price action suggested a jump to $2.4k was likely. It also highlighted that the $2150-$2200 region was a strong demand zone.
Data from Hyblock matched both inferences that AMBCrypto drew from the price action chart.
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The $2420-$2450 area was estimated to have a liquidation level of almost $3 billion.
Further north, the $2620-$2660 and $2750-$2800 regions are estimated to see liquidation levels of $3.8 billion and $5 billion respectively. This meant that swing traders could make profits at these levels.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.