Ethereum has witnessed six notable buying opportunities since 2023, with a major liquidation of long positions occurring on January 12, coinciding with the approval of spot Bitcoin ETFs and resulting in a significant price correction.<\/p>\n\n\n\n
Recent analysis reveals that the liquidation of long positions has established a key support level at $2,450. If this price level is breached but quickly recovers, it could signal an imminent rebound. Conversely, a failure to recover may indicate a shift in market sentiment and the potential for increased downside volatility.<\/p>\n\n\n\n
Critical Point for Ethereum<\/strong><\/p>\n\n\n\n According to CryptoQuant’s analysis, significant futures liquidations often lead to longer-tailed candlesticks, signifying substantial buying activity by market whales coinciding with long position liquidations.<\/p>\n\n\n\n The low point of these candlesticks holds significance as it represents extreme market sentiment. The aftermath of such extreme situations plays a vital role in determining the price trend. If a cascade of liquidated long positions leads to downside volatility and a shift in sentiment, it can result in a sharp price decline. However, if the price holds and rebounds quickly, it can reassure investors and lead to renewed buying activity.<\/p>\n\n\n\n Historical Patterns<\/strong><\/p>\n\n\n\n Analyzing specific instances in September-October, November, and December 2023 reveals a pattern. In each case, substantial long positions were liquidated, and temporarily breaking below the tail lows resulted in a bounce-back in the market.<\/p>\n\n\n\n “The tail low of the recent mass long position liquidation is $2.45k, so if we break that price and recover right away, we’re likely to see a bounce, and if we break it, we’re likely to see a shift in sentiment and downside volatility.”<\/p>\n\n\n\n Ethereum’s Current Status<\/strong><\/p>\n\n\n\n As of now, Ethereum is trading above $2,515, experiencing a slight 1.19% decline over the past day. The supply of Ethereum on crypto exchanges has been steadily decreasing and approaching an all-time low, indicating optimistic sentiment among investors.<\/p>","protected":false},"excerpt":{"rendered":" Ethereum has witnessed six notable buying opportunities since 2023, with a major liquidation of long positions occurring on January 12, coinciding with the approval of spot Bitcoin ETFs and resulting in a significant price correction.<\/p>","protected":false},"author":1,"featured_media":4154,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[44,49],"class_list":["post-4153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain","tag-ether"],"_links":{"self":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/comments?post=4153"}],"version-history":[{"count":1,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4153\/revisions"}],"predecessor-version":[{"id":4155,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/posts\/4153\/revisions\/4155"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media\/4154"}],"wp:attachment":[{"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/media?parent=4153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/categories?post=4153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoneblock.hr\/hr\/wp-json\/wp\/v2\/tags?post=4153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}