Ethereum's Rollercoaster Ride: Bulls Battle Bears, Key Resistance Levels Tested

Ethereum price has been on a rollercoaster ride recently, with bulls and bears battling for control. After finding support at the $2,000 level, Ethereum has started to recover, aiming higher and testing key resistance levels.

Ethereum price has rebounded from the $2,000 support zone, gaining nearly 6.2% since yesterday. Bulls are now eyeing a move above the $2,350 resistance level, which could signal a stronger recovery. However, the path to higher prices is not without challenges, as Ethereum price has faced hurdles in its attempt to recover.

For Ethereum to regain bullish momentum, it must break through key resistance levels, starting with the $2,500-$2,600 range. A successful close above this range would indicate a potential trend reversal. However, a drop of nearly 8% could wipe out more than $700 million worth of long positions, according to CoinGlass data.

Crypto volatility has been high lately, with the sector sensitive to macroeconomic events and market sentiment. As the Crypto Summit on March 7 approaches, traders are eager for a rally, but an 8% drop in Ethereum price could catalyze long liquidations worth more than $700 million. This could present an opportunity for buyers to accumulate ETH at a discount.

From a long-term perspective, Ethereum price has already swept the $2,100 level on March 4, causing a massive decline in Open Interest. This liquidation event could serve as a good reversal signal, similar to previous events in February and September 2024. If history repeats, investors can expect Ethereum price to catalyze a similar liquidation event around the Crypto Summit on March 7.

The ideal Ethereum price scenario for kickstarting a bullish reversal would be a sustained rally in the March 7 Crypto Summit followed by a crash that leads to a bottom formation. In such a case, Ethereum price will need to retest the $2,600 and $2,700 resistance levels and form a top on March 7. A reversal or profit-taking after the event could push ETH price below key liquidation levels and into a strong demand zone, extending from $1,600 to $1,700.