#USConsumerConfidence Ethereum ( $ETH ETH) has just experienced a long liquidation worth $5.1155K at a price of $3171.39. This means that a significant amount of leveraged positions were forced to close, resulting in a price dip. But what's next? Let’s break down the situation and give you a clear strategy moving forward.
What Happened?
Long positions are when traders buy in anticipation of price increases. When Ethereum hit $3171.39, it triggered a large liquidation. This forced the positions to close, and the selling pressure contributed to the price moving lower.
What’s Next?
After a large liquidation, the market often sees some short-term volatility. However, the price might stabilize or move back in a favorable direction if buying momentum kicks in.
Buy Zone:
For those looking to buy ETH after this dip:
Buy Zone: Around $3000 – $3050
This range could be a good entry point if Ethereum holds above this support level.
Look for confirmation from market indicators, such as RSI or MACD, to ensure it's not a false bottom.
Target:
Once ETH stabilizes and the buying pressure kicks in:
Target Zone: Around $3250 – $3300
This is where ETH could face resistance and might start to consolidate.
Monitor market news, as any bullish news could push it even higher.
Stop Loss:
Always set a stop loss to protect your capital:
Stop Loss: Below $2950