Ethereum, the second-largest cryptocurrency, has been on a roller coaster ride lately. After a major dip in early August, it’s showing signs of recovery.
A Big Crash, A Bigger Bounce?
Last week’s crash sent Ethereum’s price plummeting to $2,112, the biggest drop of the year. But the coin has bounced back, gaining 8% in the past week. This suggests a potential bullish trend might be brewing.
Liquidations Lead to Bullish Signals
Market analysts at CryptoQuant noticed something interesting: the crash caused a huge liquidation of long positions in the futures market. This is a big deal because, in bull markets, these liquidations are often followed by a price surge.
CryptoQuant believes that with the futures market potentially resetting, Ethereum could be poised for a big price jump, potentially even surpassing previous all-time highs.
The Road to $3,000
Crypto analyst Caleb Franzen is also optimistic about Ethereum’s future. He thinks that if Ethereum breaks through the $2,725 level, it could signal a strong upward move.
His analysis suggests a bullish trend, with a series of higher lows and positive indicators.
However, Ethereum needs to overcome some hurdles. The first resistance level is at $2,700. If it can break through that, it will face further resistance at $2,900 and $2,990 before reaching the coveted $3,000 mark.
On the other hand, if Ethereum fails to hold above $2,550, it could face further declines towards the next support level at $2,345.
So, while the future of Ethereum remains uncertain, the recent bounce and bullish signals suggest that a move towards $3,000 might be on the cards. But only time will tell if this bullish trend will truly take hold.
