Ethereum Bulls: Liquidation or Just Bounced?

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Ethereum‘s price is currently taking a nap under the key moving averages, which is not the most inspiring sight for a bull. 🧘‍♂️💸 Rising futures open interest and a lack of price action are like a warning sign that says “Liquidation Risk: Proceed with Caution (or a parachute).” 🚀

not very exciting, but definitely twitching. 🐿️

Tom Lee: $3,000 ETH Is the Most Undervalued Asset

Bitmine Chairman Tom Lee stated at the Binance Blockchain Week on December 4th that $3,000 Ethereum is grossly undervalued, and that the current decline in the crypto market is mainly related to deleveraging, rather than the…

– Wu Blockchain (@WuBlockchain) December 12, 2025

The cryptocurrency remains below its 100-day and 200-day moving averages despite breaking above the trendline, the analysis stated. The recent price action showed rejection from the same resistance zone that limited gains in early November. It’s like a broken record, but with more math and fewer dance moves. 🎶

Ethereum price increases

Technical indicators suggest potential support near a bullish order block that aligns with the recently broken trendline, according to the report. On shorter timeframes, Ethereum (ETH) broke above a bearish trendline but encountered immediate resistance and fell back below prior levels. It’s the crypto equivalent of a rollercoaster that only goes up, then immediately down. 🎢

The Relative Strength Index has declined from overbought conditions, indicating weakening momentum, the analysis noted. Previous resistance levels have converted to minor support zones, though recent price action displayed limited follow-through. It’s like a superhero who forgot their powers. 🦸‍♂️

Open interest in Ethereum futures contracts has risen gradually and remains at elevated levels while the price has shown modest recovery, according to market data. Historical patterns indicate that rising open interest combined with flat or declining prices has preceded significant price movements in either direction. It’s like a seesaw with no one on it-eventually, someone’s going to fall. 🪑

When open interest increases faster than price, it typically signals aggressive speculative positioning that can lead to liquidations, the analysis stated. The current market structure suggests heightened risk without corresponding spot market demand, according to the report. It’s like a game of musical chairs where the chairs are all on fire. 🔥

Ethereum traded below key moving averages as of the latest data, with technical analysts monitoring whether the cryptocurrency can sustain support levels or face further downside pressure. It’s the crypto version of a cliffhanger-no one knows if it’ll jump or just sit there. 🪞

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2025-12-12 14:15