Ethereum Buy-the-Dip Setup as ETH Hits $4.3K, Bullish Pennant Formation, and Short Liquidations Worth $5B Above $5,000

Ethereum liquidity maps show buy clusters between $3,800-$4,200, suggesting a strong support zone. Short liquidations worth $5B are building above $5,000, potentially leading to a squeeze. ETH forms a bullish pennant, with a breakout over $4,600 opening a clear path to $5,000. Analysts expect a correction before a potential pump, with the road to $5K clear.

Ethereum (ETH) has been experiencing significant price movements and liquidity dynamics in recent weeks. According to COINOTAG analysis [1], Ethereum is undergoing a decisive retest between $4,200 and $4,400 after breaking multi-year resistance. This retest is crucial as it could confirm a breakout and open targets near $4,843, $5,579, and $6,407. Conversely, a failure to hold this zone could lead to a decline towards lower Fibonacci supports.

The immediate support zone for Ethereum is between $4,200 and $4,400. At the time of writing, Ethereum traded at $4,407.53, down 0.62% on the day. The Relative Strength Index (RSI) has cooled to 54.53, indicating that the immediate momentum has normalized from prior overbought conditions. The Bollinger Bands also suggest elevated volatility, with the upper band near $4,905 and the lower band around $3,897.

Analysts are watching the weekly close for direction. A weekly close above $4,400 to $4,500 with follow-through clearing $4,800 to $4,900 resistance would signal confirmation of the breakout. This could lead to further gains towards the targets set by analyst Rose at $4,843, $5,579, and $6,407.

In addition to the retest, Ethereum liquidations have been a significant factor in recent market movements. COINOTAG News reports that total position liquidations across the crypto network reached $526 million over the prior 12 hours, with long liquidations at $96.9 million and short liquidations at $429 million [2]. Ethereum comprised roughly $315 million of these liquidations, highlighting concentrated derivative exposure and elevated volatility pressure in ETH markets.

Liquidity maps show buy clusters between $3,800 and $4,200, suggesting a strong support zone. Short liquidations worth $5 billion are building above $5,000, potentially leading to a squeeze. ETH forms a bullish pennant, with a breakout over $4,600 opening a clear path to $5,000. Analysts expect a correction before a potential pump, with the road to $5,000 clear.

Traders are advised to monitor weekly closes, volume, and momentum indicators to act decisively. A weekly close above $4,500 with rising volume suggests continuation, while a close below $4,200 with expanding selling volume signals a deeper correction. Long-term investors should view a successful retest as confirmation of structural strength but consider scaling into positions and managing risk around the outlined Fibonacci supports.

References:
[1] https://en.coinotag.com/ethereum-could-retest-4200-4400-with-upside-targets-near-4843-5579-and-6407/
[2] https://en.coinotag.com/breakingnews/ethereum-liquidations-top-315m-in-12-hours-as-crypto-sees-526m-wiped-out-coinglass/