Ether (ETH) is facing potential downside risks, with price action indicating a correction towards year-to-date lows if bulls cannot secure daily closes above the critical $2,150 to $2,400 range. Current market dynamics are heavily influenced by macroeconomic factors and geopolitical tensions, particularly the ongoing conflict involving the US and Iran, which has led to over $1 billion in futures-driven sell pressure. Repeated rejections at $2,150 have capped rallies, while the ascending trendline suggests that a breach below could lead to a focus on $1,900 and potentially expose ETH to its yearly low at $1,736.
The liquidity landscape reveals a significant imbalance, with $2.4 billion in long liquidations near $1,845 and $1.7 billion in short liquidations near $2,255. This indicates a larger pool of downside liquidity, yet the lack of substantial short positioning suggests traders are adopting a cautious stance rather than aggressively betting against ETH.
Market professionals should monitor the $2,150 resistance closely; a sustained move above this level could signal a shift towards $2,400, while failure to hold may trigger further declines toward $1,900.
Source: cointelegraph.com