Ethereum Price Remains Below $4,000 Amid Liquidations of $53 Million
Ethereum's price performance has been slower compared to Bitcoin, which recently surpassed $106,000. Ethereum is currently trading at $3,943, reflecting a 1.4% increase over the last 24 hours. Despite this, some analysts identify potential growth for Ethereum.
Retest Before The Major Rally
Analyst CryptoBullet compares the current market conditions to Ethereum’s January 2021 rally. He noted that Ethereum closed above key resistance levels for two consecutive weeks, suggesting bullish momentum. He predicts a possible dip to $3,700 before a quick recovery, emphasizing Ethereum's strength.
$ETH 1W update
Second consecutive weekly candle closed above the Resistance
The shape of the candle and overall environment reminds me of January 2021
We might wick to $3700 this week but it will be bought back up quickly
Don’t ignore this #ETH strength! https://t.co/rIamWMSAb6 pic.twitter.com/29bs5aTUd3
— CryptoBullet (@CryptoBullet1) December 16, 2024
Another analyst, Titan of Crypto, noted Ethereum's highest weekly candle close since 2021 as significant, suggesting that a successful retest could lead to new all-time highs above $4,878.
Ethereum Traders Face Liquidation
Despite bullish forecasts, recent price fluctuations have led to substantial liquidations among Ethereum traders. Data from Coinglass reveals that 123,021 traders were liquidated in the past 24 hours, totaling $396.41 million across the crypto market. Ethereum accounted for approximately $53.12 million of this amount, with long positions suffering losses of $28.4 million and short positions losing $24.69 million.
Liquidations occur when an exchange forcibly closes a trader's position due to insufficient funds to cover losses, indicating over-leverage among traders betting on upward movements.
Featured image created with DALL-E, Chart from TradingView