- Ethereum must reclaim $2,900 to confirm a bullish breakout and sustain momentum.
- Holding $2,400 support could push prices toward $2,700 resistance in the coming days.
- Short liquidations fueled the surge, but organic buying is needed for a true rally.
A sharp price drop in ETH erased billions from the market. Unlike Bitcoin, Ethereum failed to reach a new all-time high. Now, traders wait for a clear signal. Will a true recovery begin, or is another trap forming? Momentum returned after bouncing from $2,100. The price surged past $2,400, showing strength. However, the 200-day moving average near $2,900 blocks further gains. Bulls must reclaim this level to confirm a breakout.
Will ETH Stay Above $2,400?
ETH is trading within a tight range, trying to build momentum. A V-shaped recovery may be forming, but obstacles remain. The $2,400 level now serves as a key support zone. Holding this area could push prices toward $2,700. Breaking above that resistance would bring $2,900 into focus. Failure to hold support could lead to another drop. Bears may regain control, pulling Ethereum back toward $2,100. Price action in the coming days will determine the next big move.
Short Liquidations Fuel the Surge
Futures traders played a major role in the recent spike. Many opened leveraged short positions during the decline, expecting more downside. Instead, a sudden rebound forced liquidations, triggering a price jump. Data shows the largest short liquidation wave in years.
As positions closed, buying pressure surged. This momentum helped ETH break past $2,400 with ease. For a real rally to occur, demand must shift from liquidations to organic buying. Higher volume would confirm bullish strength. Reclaiming $2,900 remains essential for long-term momentum.
For now, the price of ETH is at a turning point. Bulls must defend key levels to keep hope alive. Without a strong move higher, another sell-off may follow. The next few days will reveal the true direction.