Ether (ETH) has risen again and is currently priced over $2 000 with its derivatives market seeing a lot of trading activity on several exchanges. The short liquidity of the crypto might be what bulls will go for next since they’ve already loaded up on new leveraged positions.
Generally, more than 110,000 contracts have moved from the spot exchanges to derivatives platforms, while a key leverage indicator has jumped to record levels. The Ether estimated leverage ratio rose to a record 0.78, surpassing the prior peak of 0.778 on January 1.
Also Read: Ether Network Activity Surges to 10-Year High As Price Struggles at $2K
The current focus of the market is on the supply zone between $2, 050 and $2, 100. If Ether manages to clearly break above this range, it could lead to a significant price move above $2, 150.
Approximately $273 million of total short, liquidation leverage is clustered around $2030 which is a price level that acts like a magnet. Major short liquidation clusters typically result in forced buybacks thus driving upside volatility.
Also Read: ETH Faces Sustained ETF Outflows as Price Tests Key Support Zone Near $1,900
Looking at the one, hour chart of ETH, we can see that it has made a bullish reversal and is currently retesting a long, term ascending trendline that has acted as the price support numerous times since the last market cycle.
Cyril-DeFi, an analyst, states that every time the price has hit this support, it has resulted not only in a bounce but in a strong revival making the $1.9k$2k range a critical level to watch.
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