Ethereum Price Rises Amid Leveraged Long Liquidations: Can It Sustain Uptrend?
The Ethereum price has been experiencing upward pressure after failing to hold above $2500. However, this uptrend is being driven by leveraged long liquidations triggered by a macro shock.
Ethereum needs to hold above $2,320 to maintain its bullish structure. The token's price chart shows a notable change in structure, with major lows formed around $880, $1,350, and $1,500.
The breakout above the $2,370 weekly structure is crucial for sustaining an uptrend. However, without a clear increase in trading volume, this move may be less convincing. The open interest stands near 752K, indicating elevated derivative participation.
The Ethereum exchange reserves have fallen to around 14.92 million ETH, reducing readily available selling supply if demand rises. Additionally, more than 42 million ETH is currently staked, committing a substantial portion of the circulating supply to the network.