• Ethereum price traded close to $2,600 as crypto skilled a quick lull.
• A CryptoQuant analyst says ETH might witness a brief squeeze, however factors to $2.7k as key resistance.

Ethereum traded to close $2,750 on Monday, Oct. 21, rising amid broader beneficial properties for the crypto market as Bitcoin shot previous $69,000. Nonetheless, with BTC dipping, the ETH price adopted swimsuit and examined assist close to $2,600 on Oct. 22.

The price of Ethereum has returned above $2,620, and a CryptoQuant analyst says the highest altcoin might see a brief squeeze state of affairs. In keeping with Shayan B, this outlook outcomes from the rising leverage. If the bulls handle to interrupt out above the provision wall round $2.7k, then ETH price might rise additional.

Ethereum price outlook

Presently, the market appears bearish on ether price prospects, which suggests many merchants anticipated a draw back continuation. However with “leverage at concerning levels,” a brief squeeze would imply surprising price surge and main liquidations.

ETH would notch beneficial properties in such a case.

“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event. In such a scenario, if ETH’s price rises unexpectedly, traders with short positions could be forced to cover their positions by buying back ETH, creating an impulsive price spike,” the analyst famous.

The important thing degree nonetheless stays on the 100-day shifting common close to $2,700. This space presents a notable resistance space that bulls could have to overcome to see additional beneficial properties.

Ethereum Faces Quick-Squeeze Threat: Rising Leverage and Key Resistance at $2.7K

“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.” – By @ShayanBTC7

👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW

— CryptoQuant.com (@cryptoquant_com) October 22, 2024

Knowledge from Coinglass confirmed whole 24-hour crypto liquidations stood at over $165 million.

Most of this, about 75% had been lengthy positions rekt over the previous 24 hours at $129 million. Shorts accounted for about $36 million. Ethereum, information confirmed longs accounted for $36 million of the whole $39 million liquidated over the previous 24 hours.

ETH price reached its year-to-date peak of $4,070 in March.