- Ethereum has a bullish structure on the weekly chart.
- The two key range resistance levels overhead line up well with the liquidation heatmap.
Ethereum [ETH] bulls took over a month to breach the resistance at the $2.4k mark. The Bitcoin [BTC] spot ETF approval news took Ethereum to the local high at $2.7k, but was rejected from there.
This price action presented the idea of a range within a range, which AMBCrypto explores here. In the meantime, the weekly market structure remained bullish, with the $2.1k level being the higher low.
The $2370 resistance could rebuff ETH bulls
The one-week chart showed that the $2.5k to $2.7k zone was a resistance from May 2022. It had been a support zone in March 2022 but was later breached. In the past two weeks, it served as a supply zone.
The range (purple) for Ethereum extended from $2.1k to $2.6k, with the mid-range mark at $2370.
The lows of the range saw candlewicks on the daily chart venture below $2.2k, but these were quick to bounce upward. The past few days saw another such reaction.
Until the push above $2.4k, the mid-range could be considered a range by itself. The price action since then has shown that expanding the range highs made sense.
Therefore, the $2.4k and $2.6k levels are likely to oppose ETH gains.
The RSI was below neutral 50 to reflect bearish momentum, but this could change. On the other hand, the OBV fell to the December highs.
The OBV appeared to move within a range, just like the price. This meant that the buyers and sellers had been equally strong over the past month.
The liquidation heatmap could give more clues
The one-day price action suggested that a bounce to $2.4k was likely. It also underlined that the $2150-$2200 region was a firm demand zone.
Data from Hyblock agreed with both these inferences that AMBCrypto drew from the price action chart.
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The $2420-$2450 area was estimated to have close to $3 billion worth of liquidation levels.
Further north, the $2620-$2660 and $2750-$2800 regions were estimated to have $3.8 billion and $5 billion worth of liquidation levels respectively. This meant swing traders could book profits at these levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.