Ethereum Range Trade Opportunity and Short Liquidations

The crypto market remains sideways even after the rally between Tuesday and Wednesday.

And Ethereum is no exception.

We’ve seen ETH trade below $1,840 since testing it on the 18th, and we have similarly strong support at $1,715.

We also saw Ethereum testing the September 2021 trend line at $1,680 on Monday, a must-hold level for bulls.

So we have a well-defined ETH range between $1,715 and $1,840.

Given this range and the short liquidations that have developed at $1,870, I wouldn’t be surprised to see a quick pump above range highs to flush shorts.

Liquidation clusters like the one above often act as magnets, especially in ranging markets.

Whether that becomes a deviation or not will depend on how ETH reacts to $1,840.

If we see a break and hold above $1,840, the $2,030 resistance could be next.

Of course, a break above $1,840, followed by a close back below, would confirm a bearish deviation and likely send ETH back to $1,700.

We also have a minor area to keep an eye on between $1,785 and $1,790 to keep an eye on this week.

ETH reclaimed the level as support on Wednesday, so any higher time frame close below would set up a minor deviation for a move back to $1,715.

I’m still cautiously bearish on crypto while Bitcoin is below the $29,000 macro resistance, but I’m also open to playing the range while it exists.