Ethereum Price Breaks Bearish Trend, Now Faces a Critical 10% Test
Ethereum has broken its bearish structure, but a critical 10% upward move is needed to confirm the reversal amid high derivatives risk.Summary
Ethereum's price has recently broken out of a descending channel that defined its bearish trend since October, supported by a bullish divergence between price and the Relative Strength Index (RSI). However, this reversal is fragile, as a hidden bearish divergence suggests potential consolidation or a pullback if the price drops below $3,220.
Short-term risk is elevated due to derivatives positioning, with long liquidation leverage significantly outweighing short leverage ($2.20 billion vs. $303 million). Significant long liquidations are clustered between the current price and $2,850, which could trigger a cascade if hit. Conversely, whales have recently accumulated about 320,000 ETH, suggesting confidence in an upside move.
The key determinant for the next move is a 10% rally to the $3,470 level. Clearing this resistance would invalidate the hidden bearish divergence and move ETH away from major liquidation clusters, potentially opening the path toward $3,910 and $4,250. Failure to achieve this rally risks a re-exposure to deeper downside if support at $2,850 is lost.
(Source：BeInCrypto)