Anticipating Ethereum’s Rebound: When will ETH Surpass the $2.9K Mark?

Key Points

• Ethereum’s recent gains are likely not due to organic demand, but rather a liquidity hunt that could push prices to $2.9k.
• Despite some resistance and lack of bullish conviction from speculators, long positions are gaining dominance.

Ethereum has seen some gains recently, but these are probably not due to organic demand. Instead, it seems a liquidity hunt could push prices to reach $2.9k in the coming days.

A few days ago, Ethereum presented a promising case for buyers. This was when institutional interest increased and whales started to accumulate more of the token. Over the past two days, some gains have been made, with prices reaching $2672.

Proposal for Multiple-Block Proposers

In related news, Vitalik Buterin supported a proposal for multiple-block proposers in the network. This proposal aims to mitigate the risks of centralization and manipulation.

The resistance zone of $2580-$2680, which was a challenge for the bulls in January and February, looms large. Therefore, it is crucial for the bulls to convert this zone into a support zone in the days to come.

Technical Indicators and Speculators

The technical indicators, however, are not promising. The daily RSI stands at 37, indicating a strong downward momentum. The CMF is at -0.1, signifying a heavy outflow of capital from the market. This detracts from the recent price gains.

It appears that the price rally from the $2.1k lows was driven by liquidity from late short-sellers, rather than robust demand. Consequently, another southward move could follow this liquidity hunt.

Since Monday’s lows, Ethereum has bounced back by 27%. However, the Open Interest has only increased from $7.07 billion to $7.79 billion, a modest rise compared to the price gains. This indicates a lack of bullish conviction among speculators.

Despite this, the spot CVD has started a slow uptrend, which is positive news for the bulls. It has been revealed that long positions are beginning to dominate. The Cumulative liq levels delta is becoming increasingly positive.

The most significant liquidation levels to the north are $2791 and $2845. However, since the delta is not overwhelmingly positive, further price gains in the near term can be expected. Beyond $2845-$2900, the bulls are likely to face difficulties, and prices could start to decline from there.

Please note that this information does not constitute financial, investment, trading, or other types of advice and is solely an opinion.