Ethereum (ETH) $2,515.72 The price gained almost 40 %by capturing the general upward trend in the crypto currency market in the last week. This ascension caused about 6.61 million investors to come to the threshold of passing the EKR with ETH’s exceeding $ 2,500 threshold. The liquidation of short positions is at the risk of short position of 800 million dollars if the price increases by 3 %, while the price of the bear investors are significantly in a difficult position. Analysts point out that this movement can trigger sudden volatility periods.
RISE AND INVESTMENT Snow Threshold in Ethereum
In the first week of May, ETH raised a rapid rise starting from $ 1,812 to $ 2,584. The three consecutive ascension candles completed the classic “three white soldiers” formation; He clearly demonstrated that buyers dominated the market. The round dip formation in the form of “U” in this graph is considered as a sign of the trend return.
According to Intothheblock data, an average of $ 2,462, Ethereum, approximately 6,61 million investors will enter the profitable region with the exceeding price of $ 2,557. If this level is exceeded, a position of 67 million ETH can be moved to a powerful support zone. Therefore, investors focus on the protection of this critical dam and follow the possible rise.
Increase in volatility and leveraged transaction risks
Coings’s liquidation map shows that if the price increases only 3 %, a short position of $ 786 million may be exposed to compulsory liquidation. Such a great liquidation can rapidly create a new wave of purchase in the market and carry Ethereum even further up.
On the other hand, if the ETH price decreased by 3 %to $ 2,438, it will face the risk of $ 715 million long position liquidity. This scenario is a harbinger of instant harsh decreases, Cauction (attention) comes to the forefront in leveraged transactions. The RSI indicator points to excessive purchase strengthens the likelihood of correcting in the short term.
Investors follow 3,000 dollars according to technical data, psychological resistance and 4,570 dollars as a potential target level. The course above the 200 -day exponential moving average confirms that the general trend is still on the rise. However, at the end of the work there is high leveraged positions and an increase in volatility; This makes risk management critical.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
