As a result of recent return to the Cryptocurrency market over the weekend, Ethereum (ETH) has created two Chicago Mercantile Exchange (CME) -gap to $ 3,000 and $ 2,600. Crypto -analyst Ted suggests that a short squeeze could soon be able to pressure The price beyond $ 3,000 and potentially fills these two CME hatches.
Is an Ethereum Short Squeeze imminent?
Over the past two weeks, Ethereum has lost $ 70 billion in its total market capitalization and left it with a market value of $ 268 billion at the time of writing. According to data from Binance Crypto Exchange, ETH reached a low $ 1,993 on March 4.
Although Ethereum currently acts within the low range of $ 2,000, analysts believe that a short clamp can benefit ETH bulls. Ted took to X to share his analysis on ETH’s current price measure.
Analysts pointed out that ETH has two significant CME hatches to fill in the short term: one to $ 3,000 and the other to $ 2,600. Ted also noted that ETH has filled all CME hatches since Q1 2024, so it would not be surprising to see these gaps soon filled.
Excessive baissey feeling about ETH may be the catalyst that triggers a massive card press. The analyst declared:
I think we could soon see a massive card press, which will fill the first CME gap. After that, there may be some consolidation before ETH leads higher.
For the uninformed, a CME gap refers to the price difference that occurs on Ethereum -Future agreements that are traded on CME when the market is closed for the weekend and again opens at another price. Traders often look at these gaps, as ETH historically tends to “fill” them by visiting the price level where the gap occurred.
Similarly, a brief pressure arises when traders who have invested in an asset are forced to buy back their positions when the price is rapidly rising due to unexpected haissert speed. This increase in purchase pressure can further increase the price of the asset and force liquidations and potentially even higher prices.
Several Haussearted signs for ETH, but the feeling must be improved
Fellow Crypto Trader Merlijn, the trader’s analysis seems to adapt to Teds. Trader noted The fact that ETH Relative Strength Index (RSI) is at a “critical level”, and emphasizes that every time the digital asset has entered this zone followed a significant movement.
Other positive signs, such as a haussey divergence, also appear propose A potential upward movement for Ethereum. However, it would be wise to wait for similar haisse indicators to develop longer time frames before entering the market.
While these indicators may point to a potential rally in ETH, the overall feeling about the digital currency continues to be in doldrums. At press time, ETH is $ 2,221, an increase of 1.4% over the past 24 hours.
Featured image from unsplash.com, charts from X and tradingview.com
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