ETH's price action is quietly getting itself ready for a big move and this time, global politics may hold the key. According to Ted Pillows on Twitter, on-chain data shows a dense wall of liquidity between $4,400 and $4,600 for ETH. That is where most traders have stop-loss or take-profit orders. If price breaks through this area then it can trigger a wave of short liquidations, a classic short squeeze that is going to pump ETH.
However there is also a safety net below, around $3,600 is yet another big cluster of liquidity where there are buyers waiting to get in. Ted Pillows says if the ongoing U.S. x China trade tension continues to increase then risk assets like ETH would go to the lower level before going back up. Right now ETH is approximately $4,100 holding quite well while traders are waiting for a confirmation. CEX reserves are still falling which means less coins are available to sell, this is a good sign for the bullievers.
Whether we will see a dip or squeeze this tells us one thing: ETH's market structure is tightening and getting more efficient. The next breakout will not be random instead it will be the result of months of positioning, liquidity build-up and how the real world meets crypto's next step.
Ethereum's liquidity map shows us what is next for ETH amid trade war tension.
byu/MasterpieceLoud4931 inethtrader
Posted by MasterpieceLoud4931
2 Comments
[deleted]
I’m actually impressed that ETH hasn’t just followed a similar leg up to BTC, the lack of correlation this time is very reassuring. At least this time when ETH goes up hard we won’t have to worry about BTC to be able to sustain it, it will on its own merits.