ETH's Ascending Triangle: Make or Break for the Altcoin

Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization, is at a critical juncture, with its price action in the four-hour time frame suggesting a make-or-break situation for the altcoin. According to expert technical analysis, ETH appears to be forming an ascending triangle pattern on the four-hour chart but is currently facing resistance from the descending trendline and seems to be falling toward the pattern's support level.

If ETH fails to hold the $2,680 level and closes a four-hour candle below $2,670, there is a strong possibility it could drop by 4.5% to reach the $2,560 level in the coming days. Additionally, ETH is currently trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a downtrend and has the potential to continue this bearish trend further.

With the bearish outlook, intraday traders' $74 million worth of long positions are on the verge of liquidation. Data shows that a significant $72 million worth of long positions was opened when traders became over-leveraged at the $2,657 level. This massive amount of ETH will be liquidated if the price falls below this over-leveraged level. Conversely, traders holding long positions are over-leveraged at the $2,730 level, with $275 million worth of long positions at risk of liquidation if the price falls further.

Currently, ETH is trading near the $2,685 level and has experienced a modest price drop of 0.55% in the past 24 hours. However, during the same period, its trading volume dropped by 9%, indicating lower participation from traders and investors.