Ethereum Sees Liquidity Clusters at $2,656 and $3,040 as Volatility Builds
Ethereum ($ETH) is experiencing a turbulent phase while the liquidity levels are displaying noteworthy concentrations around certain price levels. In this respect, $ETH is facing liquidity clusters at $2,656 as well as $3,040 marks. As per the data from J.A. Maartunn, a renowned crypto analyst at CryptoQuant, these levels could act as significant magnets to trigger a massive price action. However, at the same time, there is also an increased expectation of volatility while $ETH is gravitating toward them.
$ETH Liquidity Clusters Emerge at $2,656 and $3,040, Indicating Bullish Potential
Based on the latest market data, Ethereum’s ($ETH) liquidity consolidation around $2,656 and $3,040 is an optimistic sign for further price growth. In this respect, these spots could raise the price levels, paving the way for a huge bull rally. Nonetheless, the same heavy clustering also indicates the possibility of an increased volatility, raising caution for the traders.
Apart from that, the leveraged trading activity on the top crypto exchanges has spiked to a significant extent. Particularly, over the past three days, BitMex, Bybit, and Binance have gone through a noteworthy rise in this activity. Concurrently, $ETH has plunged from above the $3,000 level to the low spot of $2,850 within a matter of hours.
The historical statistics point out that the liquidity pockets, like the aforementioned price levels, often pave the way for sharper price movements. At the moment, $ETH is changing hands at nearly $2,852. Along with that, the heatmap data reveals a notable liquidity of almost 4.27K in total around the $2,835-$2,840. Keeping this in view, the $2,656 and $3,040 levels show the potential of pulling $ETH’s price toward areas where leveraged positions or stop orders are placed.
Ethereum Traders Advised to Brace for Potential Volatility
According to the CryptoQuant analyst, the $3,000 mark serves as a psychological resistance level. However, $2,835 provides support for $ETH against a downturn. Hence, if $ETH effectively revisits the respective levels, the market could witness a rise in volatility amid liquidity absorption. Overall, the traders need to get ready for such a scenario to cope with the potential implications.
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