In recent days, Ethereum (ETH) has managed to recover from a significant downturn that occurred at the beginning of the past week. After experiencing a crash on August 5th, which saw its price drop to $2,112, Ethereum has made a modest recovery, climbing back above the $2,600 level. The digital asset is now eyeing the $3,000 milestone once again, showcasing signs of a potential bullish trend.
A recent report by market analytics firm CryptoQuant highlighted a substantial liquidation of long perpetual positions on the futures market during last week’s crash. This event, not seen since November 2022, has triggered massive long liquidations, indicating a cooling of the futures market. If demand returns, Ethereum could be positioned for another bullish surge that could propel prices above previous all-time high levels.
Crypto analyst Caleb Franzen shared a similar optimistic outlook for ETH in a social media post, suggesting that breaking above the $2,725 level could signal a strong move higher. Franzen’s analysis of the market structure and 4-hour candles revealed a series of higher lows and bullish readings on supertrend indicators, adding to the positive sentiment surrounding Ethereum’s future performance. However, the first resistance at the $2,700 level on the ETH/USDT weekly chart presents a significant hurdle for the cryptocurrency to overcome in the near term.
As Ethereum continues its recovery and sets its sights on new milestones, investors and analysts alike are closely monitoring its price action and market dynamics. The recent liquidation event on the futures market, along with positive technical indicators and analyst predictions, point towards a potential bullish surge in the longer term for Ethereum. With the cryptocurrency market constantly evolving, only time will tell if Ethereum can maintain its current momentum and reach new heights in the coming days.
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