Is Ethereum on the Brink of a Price Plunge or a Moon Mission? Find Out! 🚀

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Key Takeaways

Ah, Ethereum—a digital currency that, much like a spicy food challenge, can either send you soaring to the heavens or have you revisiting your lunch.

Ethereum [ETH] has been basking in the limelight lately, thanks to a delightful combo of high spot inflows and corporate buying efforts. It’s like everyone decided to throw a fancy party at the $4,000 level—except the room might be a bit too warm, and the punch bowl could run dry any minute! 🎈

Now, let’s talk about those indicators. An overheated RSI? Check! A whopping 95% of supply in profit? Double check! That’s like having one too many cupcakes at the birthday bash—great while it lasts, but it might just bring on a food coma. Profit-taking is lurking around the corner, and if large participants weren’t so keen on snapping up more, we might’ve already seen the good times come to a screeching halt.

Derivatives have become the main attraction in this ETH circus, ramping up the tension that this could all be one overinflated bubble waiting to pop. The demand for leveraged long positions is stronger than my desire for a second slice of cake, and without significant spot activity, we’re on the verge of major heartbreak—just when you thought it was smooth sailing. 🏴‍☠️

Is Ethereum set to retrace its gains soon?

Looking at the weekly chart, we see Ethereum playing a game of leapfrog over two lower highs since November 2024—$2,850 and $3,750 levels marked like a treasure map for the bold. It’s almost as if it’s hot on the heels of a second key resistance, with bullish conviction looking more real than ever. Or maybe a mirage—who can say? 😅

But hold your horses, dear traders! Ethereum has seen a hefty gain for seven days straight—27.4%, to be precise! This is a bit like winning the lottery—you’re riding high until the realization hits: there’s a very real chance of a short-term reverse for the $3,750 region, which might just be a liquidity pocket ready to suck you into its depths. 🌀

Now, before you panic, the technical indicators don’t seem overly alarmed yet. The RSI isn’t in overbought territory, and the CMF hasn’t even bothered to cross the +0.05 line. So, for now, all systems seem operational!

Zooming in on the liquidation heatmap from the past year, the $3.8k and $4.1k regions are standing out like a neon sign in a dark alley—these could be the next hotspots to either feel the burn or take flight. Meanwhile, the tail end of the chart offers a few liquidity pockets until we hit the dreaded $2,000 mark. Happy hunting! 🏹

The one-month chart gives away even more secrets. Sparse liquidity lurks below, so don’t be surprised if Ethereum attempts to gallop toward that elusive $4.1k resistance soon. This very spot was last poked in December 2024, sparking a bearish reset that lingered longer than an awkward first date.

So, will Ethereum bide its time around the $4k-mark before deciding whether to break out or take a dip? Its supporting liquidity to the south at $3.5k and $2.8k doesn’t look like they might be tested anytime soon—unless, of course, Bitcoin [BTC] decides to throw a tantrum and tumbles below $116k. Buckle up! 🚀

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2025-07-21 11:06