Ethereum, the second largest cryptocurrency, has just made history reaching a new record of $4,960. But, watch out!, the joy didn't last long. Experts are seeing signs that the 'momentum' is falling, like when your phone battery suddenly runs out. 📉
Here comes the technical part, but don't be scared, we'll decipher it like a treasure map. 🗺️
The warning sign : The RSI (an indicator that measures the strength of a trend) tells us that although the price rose, the strength behind that rise was not the same. It's like a runner reaching the finish line with a smile, but inside, they are out of breath. This 'fatigue' could lead to a correction, that is, a price drop.
Where is the battle? : Ethereum found a support floor around $4,400. If it holds there, we could see a new attempt to rise. But if it fails and falls below, the next important support level is at $4,000. Imagine these as the defense walls of the cryptocurrency. 🏰
The liquidity drama : There are two key points that are acting as magnets for the price: $4,900 upwards (where people who bet short could be 'liquidated') and $4,000 downwards (where liquidations of long bets are waiting). The market is moving wildly, with sharp movements, because it is looking for where the people with the most money at stake are to 'clean them out'.
Why is this important? If you have Ethereum or are thinking of buying, this analysis gives you the keys to understand why the price can suddenly rise or fall. It's not a game of luck, it's a battle of liquidity and strength. ⚔️
In summary, Ethereum is at a crucial point. The question is: will it consolidate at its new level or are we in for a strong correction? Only time will tell. Keep your eyes open. 👀$ETH
