As a result of a recent pullback in the cryptocurrency market over the weekend, Ethereum (ETH) created the gap between the two Chicago Mercantile Exchanges (CMEs) for $3,000 and $2,600. Crypto analyst Ted suggests that a short aperture could quickly boost prices by over $3,000, filling these two CME gaps.
Is Ethereum’s short aperture imminent?
Over the past two weeks, Ethereum lost $70 billion in total market capitalization, leaving it with a market capitalization of $268 billion at the time of writing. ETH reached a minimum of $1,993 on March 4th, according to data from Binance Crypto Exchange.
Ethereum is currently trading at a low $2,000 range, but analysts believe a short aperture could benefit the ETH bull. Ted took X and shared an analysis of ETH’s current price action.
Analysts noted that ETH has two important CME gaps. One is $3,000 and the other is $2,600. Ted also noted that since Q1 2024, it’s not surprising to see these gaps fill up soon, as ETH has filled all the CME gaps.
The excessive bearish emotions surrounding ETH can be the catalyst that causes large short throttles. Analyst I explained it:
I think we can see a large short aperture right away. There may then be some integration before the ETH head gets high.
Without information, the CME gap refers to the price difference that occurs in Ethereum futures contracts that trade on CME when the market closes over the weekend and reopens at a different price. Traders often see these gaps, as ETH tends to “fill” them by reexamining price levels that have historically occurred.
Similarly, a short squeeze occurs when traders bet on assets are forced to buy back their positions as their prices rise rapidly due to unexpected bullish momentum. This surge in pressure can further raise the price of assets, force liquidation, and even higher prices.
Multiple bullish signs for ETH, but emotions need to be improved
The analysis of fellow crypto traders Merlijn traders appears to be consistent with Ted’s analysis. trader It’s attracting attention The emphasis on the ETH relative strength index (RSI) being at a “critical level” highlights the major movements that continue each time a digital asset enters this zone.
Other positive signs such as bullish divergence suggest A potential upward movement of Ethereum. However, it would be wise to wait for similar bulls to be developed over a longer time frame before entering the market.
These indicators may refer to potential gatherings in ETH, but the overall sentiment surrounding digital currency is I’ll continue Being in doldrums. At press time, ETH traded at $2,221, an increase of 1.4% over the past 24 hours.
Unsplash.com featured images, X and tradingView.com charts
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