In recent days, Ethereum (ETH) has experienced a modest recovery after a significant downturn at the beginning of the past week. Reclaiming the crucial $2,600 level, Ethereum now sets its sights on the $3,000 milestone once again. The crash on August 5, which saw Ethereum’s price plummet to $2,112, marked the year’s largest market slump. Despite this, the digital asset has bounced back by 8% in the last seven days, hinting at the possibility of a more sustained bullish trend.
A recent report by market analytics firm CryptoQuant shed light on the ETH’s price action, highlighting a substantial liquidation of long perpetual positions on the futures market experienced during last week’s crash. The firm noted 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. The cascade of long liquidations, reaching levels not seen since November 2022, could indicate a cooling of the futures market and a potential reset.
Crypto analyst Caleb Franzen shared a similar bullish prediction for ETH’s price in a recent social media post on the X platform (formerly Twitter). Franzen suggested that if Ethereum can surpass the $2,725 level, it could signal a strong move higher. His analysis of the 4-hour candles and market structure reveals a series of higher lows and a bullish reading on the supertrend indicators, adding to the optimism surrounding Ethereum’s future performance. However, with ETH currently trading at $2,645, the first resistance at the $2,700 level on the ETH/USDT weekly chart remains a significant hurdle for the cryptocurrency to overcome.
With the futures market potentially resetting and long liquidations on the decline, Ethereum could be poised for another impulsive bullish surge in the longer term. If demand returns and spot buying pressure increases, Ethereum may see prices surge above previous all-time high levels. This renewed interest in the futures market could further fuel the bullish momentum for Ethereum in the coming weeks.
Despite the recent market downturn, Ethereum shows potential for a bullish reversal in the near future. With key resistance levels to watch and optimistic analyst predictions, the path to $3,000 and beyond for Ethereum seems promising. Investors and traders alike will be closely monitoring the market dynamics and price action of Ethereum in anticipation of future price movements.
