Hello crypto enthusiasts!
As anticipated, the market experienced a sharp drop before today’s close, triggering significant liquidations (see screenshot 1).
The market has now absorbed nearly all liquidations below the current levels (see screenshot 2). Zooming out to a higher timeframe (see screenshot 3), we notice strong liquidity zones around $3300 and $3461.
If ETH can hold these levels, a rebound may be on the horizon. The daily candle closing near these zones might give traders the impression that the downtrend will continue, prompting them to open short positions. This could lead to a sudden upward move as those shorts get liquidated—a classic short squeeze scenario.$BTC
Traders should monitor ETH closely in the coming sessions for potential opportunities.
