Ethereum Price Faces Historic Resistance at $2,650
Ethereum's price is facing significant pressure as it approaches a historic resistance level. According to technical analysis, if ETH falls below this resistance, it could expose the asset to a deeper correction of around 40% toward $1,500-$1,550. This would be a substantial drop from its current levels.
The weekly relative strength index (RSI) remains constructive near 59, indicating that there is still room for further recovery if ETH can close above the 100-week EMA resistance. However, this bearish setup would weaken significantly if a decisive close above the resistance level occurs.
A liquidity heatmap shows that there is substantially more leveraged liquidity below the current price than above it, adding to the bearish outlook. A rally toward $2,650 could liquidate over $856 million in short positions, but a decline toward $1,760 could wipe out around $3.79 billion in leveraged longs, creating a much larger downside liquidity pool.