Ethereum Rally Fizzles as Price Falls Back Below $2,500
Ethereum prices soared on September 11th, rising from $2,437 to as high as $2,667, resulting in $211 million in short positions being liquidated. The rally was attributed to the CPI report showing a 3.4% annual inflation rate.
Crypto analyst Ali Martinez noted that the price surge followed the CPI report and the stock futures rising ahead of it, which sparked the hunt for overhead short liquidations.
The $2,530 high has been a point of contention for Ethereum bulls since August 21st. The UTXO Realized Price Distribution shows heavy accumulation in the $2,700-$2,800 area, indicating significant resistance.
Trader Morin pointed out that the recent breakout was likely a move to trap liquidity, with the real move potentially downward toward $2,100. A breakdown below the $2,380 range low would be a clear signal of bearish dominance.