$ETH has recently seen a sharp pullback, triggering a $5.1K short liquidation at $2947.97. This correction is a healthy move after the recent rally, as it allows the market to consolidate, digest profits, and reset momentum. In my view, these pullbacks are natural and give traders a clearer picture of key support and resistance levels.
Market Insights:
Ethereum has been testing its mid-term bullish structure. Buyers are stepping in near the $2950 area, which has historically acted as a strong reaction zone. Sellers are active near previous highs around $3050–$3070, creating a clear resistance zone. The current volatility suggests that could swing aggressively if either buyers or sellers take control.
Support & Resistance Levels:
Immediate Support: $2935–$2945 (previous reaction area and short-term consolidation zone)
Major Support: $2900 (psychological level + previous swing low)
Immediate Resistance: $2980–$2995 (previous supply zone)
Major Resistance: $3050–$3070 (recent highs and key reaction level)
Trade Setup (Short Liquidation Zone):
Entry Zone: $2945–$2950
Target 1 (TG1): $2920
Target 2 (TG2): $2900
Target 3 (TG3): $2875
Stop Loss: $2960
Market Stats:
Recent volatility shows $ETH can move $30–$50 per day in these zones.
Short-term RSI is approaching oversold conditions, suggesting a potential bounce if support holds.
Volume is higher near $2945, indicating active participation in this zone.
Pro Tip: Watch the $2950–$2945 area closely if price holds here with strong buying pressure, it could set up a nice swing trade. Conversely, a decisive break below $2900 may trigger another wave of liquidation, giving aggressive traders an opportunity to short on pullbacks.
I’m watching this closely if consolidates above $2945, strength is building, but any break below $2900 could accelerate selling toward TG3.
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