Ethereum Price Forecast: ETH smart money plans to liquidate these traders
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Loading... - Adrian Winkler
- 27 Feb 2023
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Ethereum price shows a steady downtrend since February 16. While this descent was exacerbated on February 24, the recovery rally over the weekend seems to have come to the rescue. Currently, ETH hovers without a directional bias as it decides between inefficiencies and liquidity pool raids present at both the top and bottom.
Ethereum price and liquidity raids
Ethereum price set up a string of lower highs with long wicks since producing a local top at $1,742 on February 16. Resting above these wicks are buy-side liquidity or buy-stops of investors that opened ETH short positions. The same can be seen marked on the chart as liquidity.
These short positions are definitely in-the-money since Ethereum price slid 10% from its aforementioned local top and set up a local low at $1,557. During this descent, Ether produced an inefficiency between $1,686 and $1,695, termed a Fair Value Gap (FVG).
As Ethereum price hovers around $1,640, one of two things is going to happen - a clockwork-like retracement that will produce the fourth consecutive swing low for ETH or an upthrust that propels the Ether to tag the $1,677 monthly resistance level. Read More..
