Ethereum surged 10% on Friday, liquidating $211 million in short positions, then fell back below $2,500 as the breakout failed to hold. Analyst Ali Martinez ties the spike to Friday's CPI print, while trader Morin sees the reversal setting up a possible move toward $2,100.
Ethereum jumped from $2,437 to as high as $2,667 on Friday, the 11th of September, liquidating $211 million in short positions for the day. The rally has since faded, and the price has fallen back below the psychological $2,500 resistance level.
The CPI-driven breakout, explained
Crypto analyst Ali Martinez said the short-term move followed the CPI report, which showed inflation at a 3.4% annual pace. Bulls have tried to clear the $2,530 high since the 21st of August, and the coiled price action beneath that level built up long and short liquidations around the range. Stock futures rising ahead of the report then triggered those overhead short liquidations.
The UTXO Realized Price Distribution shows heavy accumulation between $2,700 and $2,800, making that zone major resistance. Whale activity also picked up over the past couple of days, despite the lack of a strong price trend.
What comes next for Ethereum
The range around Ethereum appeared to break convincingly, but the price retraced back into the range within hours of the breakout. That reversal, paired with the scale of the short liquidations, means the breakout was likely a move to hunt down liquidity.
Trader Morin outlined the potential "trap": trapping as many people as possible before the real move, which would likely run downward toward $2,100. A breakdown below the $2,380 range low would be a clear signal of bearish dominance; until then, traders can trim their bullish expectations since the breakout has failed to hold.
Friday's rally and reversal drove $315 million in combined long and short liquidations over 24 hours, the majority on the short side.
Source: AMBCrypto
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