The major rally that started in August and intensified in September has finally flipped ETH’s higher-timeframe structure bullish, and several analysts agree that only one major resistance remains in the asset’s way.
A decisive break above it could open the door to a much larger move toward $3,000 and beyond.
$2.8K Still in Its Way
The largest altcoin has now reclaimed the 200-day moving average and pushed into the $2,800 region last week, where it was finally stopped. Daan Crypto Traders highlighted the change in its market structure, confirming that a weekly close above the 200 MA and EMA has solidified its bullish reversal.
However, he believes $2,800 is the major obstacle standing in front of ETH, and clearing it would leave relatively little high-timeframe resistance before the $3,000-$4,000 region comes back into play. Aside from last week’s rejection at $2,800, the level has stopped ETH’s progress on several occasions in the past few years.
Michaël van de Poppe is also bullish on ETH’s broader structure. In a recent tweet, he claimed that it is “literally a matter of time” before the asset sees another strong breakout to the upside.
Ethereum’s position is relatively straightforward at the moment. The higher-timeframe trend has improved substantially, but the market still needs to prove it can turn one of its most stubborn resistance zones into support.
Flushed Leverage
Fellow analyst CW argued that the size of Ethereum’s high-leverage positions has fallen sharply recently, as longs dropped to roughly $2.1 billion, while shorts stood near $4 billion. This occurred after most of the previously accumulated high-leverage positions were wrecked. The analyst added that the reduced positioning leaves ETH vulnerable to a significant increase in volatility.
This could be particularly important as Ethereum approaches $2,800. Merlijn The Trader, who has been bullish on the altcoin for months, remains constructive on its market structure. Most recently, he called attention to an emptied validator exit queue and argued that much of the forced selling pressure had already been absorbed during the earlier drawdown.
As such, he concluded that “maybe sleeping on Ethereum was the biggest mistake of this cycle,” as the asset sits 80% higher than its July bottom.
Source: CryptoPotato
