$7M in Bearish Liquidations; What’s Next?

A recent Bloomberg report suggests that Bitcoin Spot ETFs could gain approval from the US financial regulator this week. Ahead of the January 10 deadline, BTC investors await the SEC’s decision on this product. This anticipation has sparked market activity, with Bitcoin’s price stable above $45,000 and Ethereum aiming for $2,300. Concurrently, increased liquidations have been observed in Ethereum, as bearish traders get caught, weakening its immediate resistance levels.

ETH Triggers Over $7 Million In Liquidations

Coinglass data reveals a surge in Ethereum liquidations following its recovery from a recent low of $2,170 to $2,277. This period saw liquidations of ETH positions worth over $7.3 million, including approximately $5.8 million in short-position liquidations by bears. This has boosted Ethereum’s support level, sending its price above moving averages.

A key factor in this stable buying confidence is the negative Netflow, indicating ongoing accumulation of ETH despite bearish trends. As reported by IntoTheBlock, Netflow became negative when the ETH price dropped below $2,250. In the last two days, about 25K Ethereum coins were removed from exchanges, reflecting a holding sentiment among investors.

Recent data indicates a decline in interest from Ethereum whales, reaching a three-month low. The value of large transactions in USD has fallen by $3 billion to $1.74 billion. This decrease may explain why Ethereum’s price hasn’t been influenced by Bitcoin’s recent climb above $45K, as ETH was expected to surpass $2,400.

Notably, bears are strongly defending the $2,300 resistance level, as seen by the long/short ratio dropping below 1, currently at 0.8038. Bearish sentiment is gaining momentum, with approximately 55.5% of positions anticipating a price drop. On the other hand, only 45.5% of positions remain bullish about Ethereum’s uptrend.

What’s Next For ETH Price?

Ethereum price has successfully rebounded from the ascending support line and buyers quickly sent the price above the EMA20 trend line. However, sellers are strongly defending a surge above $2,300. As of writing, ETH price trades at $2,280, surging over 2.33 from yesterday’s rate.

Currently, the 20-day EMA is showing minor upward activity, and the Relative Strength Index (RSI) hovers above the midline at level, suggesting potential breakout movement in the short term. Should Ethereum break above the $2,300 level, the ETH price might climb to $2,400 to test buyers’ patience. Overcoming this level could pave the way for a rally towards $2,700 and possibly extend to $3,100.

The initial support lies around the $2,100 level. If ETH price fails to gain buying confidence, we might see its price declining toward the crucial support line at $1,974. However, this level might attract buying interest, resulting in a rebound.

In the short-term, Ethereum is expected to experience a significant surge, potentially surpassing the $2,500 mark and aiming for $3,000, depending upon a favorable outcome from the SEC by January 10th.