Coin Voice Report:
The price of Ethereum is approaching $2,600 as the cryptocurrency experiences a brief calm. CryptoQuant analysts suggest that ETH may face a bear squeeze, but point out that $27,000 is a key resistance level.
Ethereum
On Monday, October 21st, the trading price neared $2,750 as the overall cryptocurrency market rose with Bitcoin surpassing $69,000. However, as BTC fell, the price of ETH also declined and tested support around $2,600 on October 22nd.
The price of Ethereum has since rebounded above $2,620, and a CryptoQuant analyst suggests that the top altcoin may face a bear squeeze. Shayan B states that this outlook is due to the increasing leverage. If the bulls manage to break through the supply wall around $27,000, the price of ETH may further rise.
Outlook for Ethereum Price
Currently, the market seems to hold a pessimistic view on the Ethereum price outlook, indicating that many traders expect it to continue falling. However, with “leverage at concerning levels,” a bear squeeze would result in unexpected price surges and large-scale liquidations.
In such a scenario, ETH would benefit.
“With leverage at concerning levels, the futures market is now considered overheated. This makes Ethereum vulnerable to potential bear squeeze events. In this situation, if the price of Ethereum unexpectedly rises, traders holding short positions may be forced to buy back Ethereum to cover their positions, leading to a surge in price,” the analyst said.
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However, the key level remains the 100-day moving average around $2,700. This area serves as a significant resistance zone, and the bulls may need to conquer this region to see further gains.
Ethereum faces bear squeeze risk: Leverage on the rise, key resistance at $27,000
“With leverage at concerning levels, the futures market is now considered overheated. This makes Ethereum vulnerable to potential bear squeeze events.”
@ShayanB
