BONK eyes breakout – But price must beat THIS hurdle first
- Ethereum bulls have strong support just below the $2900 mark.
- A rally to $3500 could commence if the bullish sentiment continues to intensify.
Ethereum [ETH] sailed above the psychological $3000 resistance on the 25th of February. It closed the daily trading session at $3014 on the 20th, but ETH dipped to the $2900 area in the days that followed.
The NFT sales on the Ethereum network reached their ten-month high recently. The sales volume amounted to $400 million, AMBCrypto reported.
The on-chain analysis highlighted ETH outflows from exchanges worth $2.4 billion in 2024, pointing to the accumulation of the asset.
The range breakout has not yet stalled
Source: ETH/USDT on TradingView
Highlighted in purple was a range that ETH exhibited in the second half of January. It extended from $2100 to 2600. On the lower timeframe charts, two demand zones were identified at $2500 and $2650.
The price was yet to retest either region.
The market structure and momentum on the 3-day chart were firmly bullish. The rising OBV signaled heavy buying volume. Together, they showed that Ethereum prices are expected to continue to rally.
The move above the $3000 psychological resistance level is a significant one. It could heighten the bullish fervor already present in the market.
The next higher timeframe resistance level sat at $3580, and ETH may rush to this area before a significant retracement arrives.
The liquidation heatmap showed three key areas of interest
Source: Hyblock
The 3-month look back period liquidation heatmap showed that the $3050-$3110 region was estimated to have multiple levels whose liquidations were in the $2 billion to $4 billion window.
The $3050 level has already been tested, but more liquidity resided till $3100.
Further north, the $3190-$3225 region was estimated to have multiple liquidation levels measuring from $1.4 billion to $2.3 billion. Similarly, the $3460-$3520 had liquidation levels in the $2 billion territory.
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Hence, these regions will be key resistances towards which prices could be attracted before a bearish reversal.
In terms of support, the $2800-$2880 area also presented a significant pocket of liquidity. A retest of this area would likely see prices rebound.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
