Ethereum Targets $3,000 After Market Shakeout, CryptoQuant Sees Impulsive Bull Run Ahead
August 13 2024 - 5:00AM
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After enduring a significant downturn at the beginning of the past
week, Ethereum (ETH), the second-largest cryptocurrency, has staged
a modest recovery, reclaiming the crucial $2,600 level and setting
its sights on the $3,000 milestone once again. The August 5 crash,
which saw Ethereum’s price plummet to $2,112, marked the year’s
largest market slump. However, the digital asset has since bounced
back, 8% in the last seven days, hinting at the possibility of a
more sustained bullish trend. Massive Ethereum Liquidations Trigger
Bullish Signals According to a recent report by market analytics
firm CryptoQuant on the ETH’s price action, the chart below
highlights a substantial liquidation of long perpetual positions on
the futures market experienced during last week’s crash. The
firm notes that in sustained bull markets, such a significant
liquidation event is often followed by a major price rally as the
futures market stabilizes and spot buying pressure takes over.
Related Reading: Legendary Fibonacci Extension Reveals When Bitcoin
Will Reach $109,000 “The recent cascade has triggered massive long
liquidations, reaching levels not seen since November 2022,” the
firm noted. “This substantial liquidation likely indicates a
cooling of the futures market, where many leveraged positions have
been flushed out. Such a development can set the stage for renewed
interest in the futures market.” With the futures market
potentially resetting, CryptoQuant believes that if demand returns,
Ethereum could be poised for another impulsive bullish surge in the
longer term that could send prices above previous all-time high
levels. ETH’s Price Path To $3,000 Crypto analyst Caleb
Franzen echoed a similar prediction for ETH’s price in a social
media post on the X platform (formerly Twitter), suggesting that if
Ethereum can take out the $2,725 level, it could signal a strong
move higher. Franzen’s analysis of the 4-hour candles and
market structure indicates a series of higher lows and a bullish
reading on the supertrend indicators, further fueling the optimism
surrounding Ethereum’s future performance. Related Reading: Bitcoin
Investors Again Show Extreme Fear As BTC Slips To $59,000 However,
with ETH currently trading at $2,645, the first resistance on the
ETH/USDT weekly chart, located at the $2,700 level, has proven to
be the first hurdle for the second-largest cryptocurrency to
overcome in recent days. In a scenario where the current rally
extends into the coming weeks and the ETH price tackles the level
highlighted by Franzen, the $2,900 and $2,990 resistance walls
would be the last obstacles to reclaim the $3,000 level.
Conversely, the token will need to secure and consolidate above the
$2,550 level to prevent further declines toward the next support on
the daily chart, currently located at the $2,345 level following
its 25% correction. Featured image from DALL-E, chart from
TradingView.com
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