- ETH forms a bullish ascending triangle; breakout above $2,720 could trigger a $3,000 rally.
- Bearish RSI divergence and $1.36B leverage surge raise short-term pullback concerns.
- Key support at $2,472 may protect downside as Gaussian midline near $2,600 holds firm.
Ethereum (ETH) is showing mixed signals as it consolidates near the $2,700 resistance level. While some technical indicators suggest a potential pullback, others point to a possible breakout. Traders remain cautious amid high leveraged positions that could trigger liquidations around $2,472.
Technical Patterns and Sell Signals
Ethereum currently trades at $2,646.99 and forms an ascending triangle pattern on the 12-hour chart. This bullish formation shows higher lows pushing into a flat resistance near $2,700. Captain Faibik noted that a break and close above $2,720 could see ETH target $3,000 or higher.
However, daily momentum indicators such as RSI and Awesome Oscillator reveal bearish divergence, suggesting weakening strength and potential for a pullback. Sell signals are further confirmed by rising Open Interest, which surged by $1.36 billion in less than nine hours, indicating increased leverage in the market.
This level of leverage could prompt a sharp correction as traders liquidate risky positions. According to Santiment, the 30-day MVRV ratio at 24% points to unrealized profits, encouraging some investors to take profits soon.
Support Levels and Potential Price Movement
Key support is found near $2,472, where liquidations of high-leverage positions are most likely if the price falls. Despite this risk, some analysts believe a drop below this level is unlikely given Ethereum’s consistent higher lows and bullish structure. The midline of the Gaussian Channel around $2,600 has historically marked the start of significant rallies, with previous price surges leading ETH to new all-time highs.
Market analyst Alex Clay described the recent price action as a transition from a bear flag to a bullish flag, signaling preparation for a short-term breakout. Volume and momentum remain crucial to confirm any decisive move above resistance.
