Ethereum Prize: Analyst indicates possible short squeeze

• The Ethereum Prize was close to $ 2,600 because the cryptocurrency experienced a short lull.
• A cryptoquant analyst says that the ETH could have a short squeeze, but points out that $ 2.7,000 is the most important resistance.

Ethereum was traded at almost $ 2,750 on Monday, October 21st and rose against the background of wider growth for the cryptomarkt when Bitcoin shot over $ 69,000. However, when BTC fell, the ETH Prize followed this example and tested the support of around $ 2,600 on October 22nd.

The price of Ethereum has returned to over $ 2,620, and a cryptoquant analyst says that the top-altcoin could lead to a Short-Squeeze scenario. According to Shayan B, this view results from increasing debt. If the bulls succeed in breaking out the offer limit of around $ 2.7,000, the ETH price could continue to increase.

price view for Ethereum

At the moment, the market seems to be pessimistic about the prospects of prices for ether, which means that many dealers have expected the downward trend. But in the case of a "lever on a worrying level", a short squeeze would mean an unexpected price increase and larger liquidations.

ETH would make profits in such a case.

"In view of the worrying leverage, the appointment market is now considered overheating. This makes Ethereum susceptible to a possible Short-Squeeze event. If the ETH price increases unexpectedly in such a scenario, retailers with short positions could be forced to cover their positions through ETH Impulsive price increase leads, ”says the analyst noted .

The key level remains close to $ 2,700 with the sliding 100-day average. This area represents a remarkable area of resistance that bulls may have to overcome in order to make further profits.

Ethereum faces short-squeeze risk: increasing leverage and important resistance at $ 2.7,000

"In view of the worrying leverage, the appointment market is now considered overheating. This makes Ethereum susceptible to a possible short-squeeze event." - From @ShayanBtc7

👇 https://t.co/lbev3lis4d pic.twitter.com/wuz2sowmw

- cryptoquant.com (@Cryptoquant_com) 22. October 2024

data from showed that the entire crypto liquidations amounted to over $ 165 million within 24 hours.