PENGU crypto jumps 50% – Traders, here’s the real support you should watch!
- Ethereum broke its lower timeframe bullish structure.
- The liquidation levels heatmap outlined two support zones.
Ethereum [ETH] saw a sizeable pullback over the past few days after its steady bullish march over the past month. The $4.1k level was almost reached before the bulls were forced to retreat. Investors need not worry about this dent in prices too much.
Bitcoin [BTC] also faltered just above the $73k level and dragged the rest of the market down. While the rally is expected to continue higher in the long run, further losses are anticipated over the next few weeks.
Traders need to be prepared for a fall below $3500
Source: ETH/USDT on TradingView
The 12-hour chart showed that the bullish bias remained intact based on the price action. Yet on the 4-hour timeframe and lower the structure has flipped bearishly. Even the 12-hour RSI fell below the neutral 50 mark to reflect bearish momentum was rising.
The recent pullback is not a flush of the overleveraged bulls as we saw on the 5th of March. The rally saw its momentum stutter after the 12th of this month, followed by an increase in selling pressure.
The OBV began to drop lower to support this idea. The Fibonacci retracement levels (pale yellow) highlighted that the 61.8%-78.6% region at $3100-$3315 would likely be retested as support. The $3463 level could also halt the bearish progress.
Long-term investors need to brace for further losses
Source: Hyblock
AMBCrypto’s analysis of the liquidation levels heatmap showed that ETH would likely post more losses. The $3560 level was estimated to trigger $2.6 billion worth of liquidations.
These large liquidation levels were concentrated in the $3520-$3560 region, marking it as a support zone. Ethereum could see a bullish reaction from here.
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Below the $3520 level, the next large liquidation levels sat at $3300 and $3130. The former was estimated to have $2.2 billion in liquidations, and the latter to have $5.4 billion.
It also had confluence with the 78.6% retracement level at $3102.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
