Ethereum's Current Consolidation: Will It Move Up or Down...?BINANCE:ETHUSDT Ethereum Consolidating Between $1820 and $1950: Will It Break Upside or Downside..?
Ethereum has been trading in a consolidation range between the $1820 and $1950 levels since last week. As the price oscillates within this range, market participants eagerly await a breakout in either direction. The big question is: will Ethereum break upwards or downwards? Let's analyze two potential scenarios based on key price levels and liquidation points.
Scenario 1: Upside Breakout and Potential Rally
One key level to watch is the $1950 resistance. Ethereum has struggled to break past this level, but if the price manages to break above and sustain above $1950, there is a significant upside potential.
Why? At the $1994 level, there is approximately $1.16 billion in liquidations waiting to happen. If Ethereum pushes past the $1950 resistance and approaches this $1994 mark, the surge of liquidations could provide the momentum for a continued rally.
In this scenario, a good strategy would be to wait for a retest of the $1950 level as support, confirming the breakout. If the price holds above this level, it may be a good time to enter a long position, riding the potential bullish move.
Scenario 2: Downside Breakout and Further Decline
On the other hand, if Ethereum fails to hold above the $1820 support and breaks below this level, a downside move could be on the horizon. The next significant support lies around the $1785 level, where around $900 million in liquidations are waiting.
A break below $1820 could trigger a sharp decline toward this liquidation point at $1785. In this case, entering a short position after a retest of the $1820 resistance-turned-support could offer a solid opportunity for traders looking to capitalize on the downtrend.
Conclusion
Ethereum’s consolidation between the $1820 and $1950 levels presents two distinct scenarios. If the price breaks above $1950 and sustains that level, there is upside potential, with liquidation at $1994 offering a bullish catalyst. However, a break below $1820 could open the door for further downside, with liquidations at $1785 triggering a possible downtrend.
Traders should keep a close eye on these levels for confirmation and act accordingly based on the direction Ethereum takes in the coming days.
