Main to remember:
Ethereum’s surge above $3,700 led to significant liquidations. Despite short-term positioning and profit-taking, sustainability doubts arise. The rally lacks organic demand and may face correction.
Ethereum:
Breaking $3,700 led to $160M+ short liquidations on Binance. Earlier, $195M was wiped out around $3,500, signaling forced buyouts in high leverage environments. Such liquidation-driven rallies often lack sustainability without real demand support.
Whales’ accumulation hints at short-term gains, but long-term distribution persists, posing a threat. The support’s behavior shows a mixed picture, with short-term accumulation but long-term distribution. This divergence suggests short-term interventions by whales but an overall negative trend.
Cash market dynamics reveal selling pressure despite Ethereum’s price surge. This trend indicates traders are selling at higher prices rather than accumulating, lacking conviction. Continued dominance of selling orders may slow or reverse Ethereum’s momentum.
Market sentiment has cooled post-surge. The sentiment shift from euphoria to caution, combined with reduced enthusiasm, may weaken Ethereum’s upward momentum. Traders hesitating to enter aggressively could lead to downward pressure or consolidation.
20,350
Lunam Points