Ethereum is finally showing what it is capable of after rumors of the preapproval of the Ethereum ETF have spread around the crypto circle. For now, the price is getting ready for a swing toward or above $4,000, but its true strength is yet to be shown.
Ethereum has been seen in an uptrend that recently broke through $3,900. Currently, ETH is trading around $3,898, showing a gain of 1.92%, and the upsurge is supported well by swift trading volumes.
The technical indicators are aligning to suggest further upward movement. The 50-day EMA stands near $3,225, while the 100-day EMA lies close to $3,175. Both moving averages have provided strong support and confirmed the current trend. In addition, the RSI is at 72, which means that, at the moment, ETH is slightly overbought. Yet, this is not critical and, therefore, in case of a minor overheating, the asset can continue to grow a bit higher.
Two major price targets have emerged for Ethereum:
the immediate level now seems to be that psychological $4,000. Anything lower would imply the prevalent bearish sentiment confirmed at the moment. This will most probably see buyers join in and push the price even higher or, in other words, liquidate some substantial amount of short orders.
As for the liquidation heatmap: at the time, there was a huge cumulative long liquidation leverage all the way down to $3,200, meaning there were $3 billion worth of longs open — theoretically meaning there might be a massive sell-off in the case of liquidation. More than $1 billion in short orders get closed if the price of the second-biggest cryptocurrency on the market surges, causing a squeeze and sending bears away.
