Ethereum Setting Up For Another Short Squeeze – Crypto Piece
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This article will be primarily focused on Ethereum because there’s some MAJOR developments that have just occurred on it.
But let’s quickly touch on Bitcoin first as a quick update.
Bitcoin has been consolidating in a channel, forming a potential bull flag.
It’s respected the daily 55-EMA, despite a vicious attempt at breaking below it.
The worst-case scenario we see here is the test of the bottom of the channel around $95,000 – an attractive buying opportunity, but we’re not too confident that we’ll see that.
On the upside, one price clears $110,000, we’ll be eyeing $119k and then $136k region.
Ethereum, on the other hand, is still around 50% below its previous all-time highs.
But what some investors are calling as a “dead” token, is where we think lies a very big opportunity.
Following the recent short squeeze, Ethereum has been consolidating between $2100 and the resistance region between $2825 to $2913.
These are the 2 key levels to watch basically, especially now that the MACD and RSI are fully reset.
A break below would risk $1800 region getting tested, whereas, a break above would put $3550 at play.
Let’s look at what direction the data suggests Ethereum is likely to move towards.
For starters, the number of shorts on Ethereum are still near record levels.
The last time, it led to a 50% rally within a week (in May) as these shorts were squeezed.
We could very much see something similar if Ethereum is able to break past the $2825 to $2913 resistance region, above which the stop-losses are likely placed.
But just a lot of shorts doesn’t necessarily mean a lot if it’s not backed by other key factors that could lead Ethereum’s price higher (to then squeeze the shorts).
That’s exactly what we’ll cover next!
In the next section, we’ll take a look at:
1) What institutions are doing
2) What Ethereum whales (aka smart money) are doing
3) A major catalyst for Ethereum
4) A look at the transaction activity to see if it’s showing signs of life
5) Our proprietary Cycle Forecasts to gain a Timing Edge on Ethereum
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