Ethereum surges 3.6% reclaiming $2,220 after 16% plunge bullish reversal

Ethereum's price has shown significant resilience and recovery, rising 3.6% on a recent Saturday to reclaim the $2,220 mark. This rebound comes after a tumultuous week where Ethereum was one of the hardest-hit assets, experiencing a 16% plunge between March 2 and March 7, briefly dipping below the $2,000 mark. Despite concerns over inflationary pressures and trade policy risks, Ethereum's swift recovery indicates a strong internal bullish catalyst, positioning it for a continued rebound.

Ethereum's resilience was further supported by key trading signals, suggesting that bull traders are capitalizing on its oversold status from the previous week's volatile events. The recent price action and derivatives data from Coinglass indicate an influx of leveraged capital backing ETH’s recovery. Ethereum’s Open Interest grew 3.8% over the last 24 hours, outpacing its 3.6% price increase, which reinforces the strength of the ongoing bullish reversal.

The derivatives market also reveals significant liquidation data. Over the last 24 hours, total rekt positions amounted to $40.94M, with short traders absorbing the bulk of liquidations at $17.28M. This persistent short squeeze dynamic may accelerate ETH’s rally if price action breaches the $2,300 resistance level. The Long/Short ratio across key exchanges further supports this bullish narrative, with Binance ETH/USDT’s long-short ratio (accounts) currently standing at 3.4385, and OKX traders maintaining a 3.65 long-bias.

Ethereum's price forecast suggests a bullish breakout potential as technical indicators align with strengthening market sentiment. ETH trades at $2,214, posting a 3.39% daily gain while positioning itself for a breakout from the falling wedge formation. The falling wedge pattern is a bullish reversal structure that projects a long-term breakout target by measuring the pattern’s widest range and extending it from the breakout point. ETH’s recent price compression within the narrowing wedge suggests dwindling bearish momentum, supporting the likelihood of a bullish resolution. A daily close above the wedge resistance at $2,442 would confirm the breakout, setting up Ethereum for a rally toward $3,79