Ethereum

August 24, 2025 at 21:22

Ethereum Short Liquidation Indicates Bullish Pressure

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Analysis

- The report indicates a liquidated short position on Ethereum (ETH) at a price around $4,791.73, with roughly $105k liquidated. This typically implies short-squeeze dynamics or a sudden shift in momentum favoring longs. Such liquidity events can catalyze further upside if buyers regain control and price challenges resistances. - The price level around $4,791.73 may have acted as a nearby resistance turned support region depending on the intraday flow. If ETH holds above this mark after the squeeze, it could attract additional buyers and extend the up move, especially with crypto market-wide risk-on factors or improved macro liquidity. - Key risk factors include a reversal if the rally loses momentum, a return of selling pressure from key price levels, or broader market downturns impacting risk assets. Watch for volume divergence, on-chain activity spikes, and macro catalysts (e.g., Fed signals, Bitcoin correlations, ETF developments). - Overall, the event supports a constructive near-term bias for ETH with potential for further upside on weakness, but traders should manage risk with tight stops and consider confirmation of momentum drivers before scaling in.

Recommendation

- Consider a cautious long tilt on ETH on weakness, placing stop-losses just below the $4,700–$4,750 zone to protect against a failing breakout. - If ETH crosses and closes above $4,900 with confirming volume, look for a higher-probability long entry targeting $5,200–$5,400 as next resistance bands. - For risk-managed players, wait for a pullback to test the newly formed support around $4,750–$4,800 before initiating a position, ensuring momentum supports the move. Maintain a flexible trade plan aligned with updated price action and volume cues.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.