Ethereum Price Squeezes Shorts Positions, ETH Could Be Set For More Gains

Ethereum is pursuing the wide sentiment successful the marketplace arsenic Bitcoin and different cryptocurrencies marque a tally towards erstwhile highs. The 2nd cryptocurrency by marketplace headdress knocked immoderate gains implicit today’s trading league but seems poised for a re-test of its lows earlier moving to the upside.

At the clip of writing, Ethereum (ETH) trades astatine $1,300 with a 2% nett successful the past 24 hours and successful the past week. Unlike successful erstwhile rallies, ETH’s terms is lagging larger cryptocurrencies, specified arsenic Bitcoin, the fig 1 crypto that records a 4% nett implicit the aforesaid period.

ETH’s terms moving sideways connected the 4-hour chart. Source: ETHUSDT Tradingview

Ethereum At Critical Point, Will It Finally Breakout?

Today’s bullish terms enactment seems to beryllium prompted by a rebound crossed bequest fiscal markets, the S&P 500 and Nasdaq 100 person been trading successful the greenish giving cryptocurrencies country for a run. The bullish terms enactment is starring to a alteration of sentiment crossed the integer plus people arsenic investors turned optimistic.

Over the weekend, with accepted markets close, the concern was antithetic and marketplace participants were gearing up for a imaginable limb down. According to a pseudonym trader, Ethereum saw a spike successful Open Interest (OI) against the U.S. dollars.

This summation successful OI was recorded arsenic the cryptocurrency trended to the downside. Therefore, the expert claims that the metrics hinted astatine a spike successful abbreviated (sell) positions from traders expecting further downside successful the abbreviated term.

The liquidity provided by these abbreviated positions accumulates to the upside, making each rally stronger and fueling further bullish momentum. However, the expert believes the marketplace mightiness instrumentality this upside liquidity earlier re-testing enactment levels. The pseudonym trader wrote the pursuing via his authoritative Twitter account:

I said yesterday that determination was a batch of abbreviated physique up connected $ETH. They’re getting squeezed now. Once that’s done it gets slapped backmost down I think. Looks similar a cleanable abbreviated set-up.

Source: Byzantine General via Twitter

In lawsuit of imaginable downside, information from Material Indicators shows that the country betwixt $1,280 and $1,250 has the biggest attraction of bid (buy) liquidity connected debased timeframes. These levels mightiness supply the bulls with beardown enactment to either resume the bullish momentum oregon nonstop ETH backmost into accumulation mode.