Ethereum Battles $3K Resistance as FOMC Minutes Near

Key Insights:

• Ethereum hovers near $3,000 as traders await the FOMC minutes for breakout direction.
• $18M in short liquidations hint at sudden upside squeeze catching bears near $2,920 support.
• Price facing $3,055 resistance, with traders eyeing $3,076 sweep or $2,800 bounce setups.

Ethereum was trading around $2,980, after gaining 1.6% over the last 24 hours. Over the past week, the price has seen a modest increase of 0.5%. The $2,950 to $3,000 range remains an important level, with price repeatedly testing this area without a clear breakout.

This zone has acted as resistance several times. A close above $3,000 would be needed to confirm short-term strength. If that happens, the next levels to watch are around $3,190 and $3,310, followed by $3,430 and $3,550. Without a clean move above $3,000, price may stay range-bound.

Markets Focused on FOMC Minutes

The release of the FOMC minutes later today is likely to draw attention across markets. These minutes could help investors gauge the Federal Reserve’s stance on interest rates and economic conditions. Depending on the tone of the release, crypto markets may react with increased volatility.

Some traders are holding back from large positions ahead of the release. “Volatility could increase depending on how markets interpret the FOMC minutes,” said one trader.

However, If the message is seen as supportive of risk assets, buying pressure may return. On the other hand, a more cautious tone may weigh on prices.

Short Liquidations Rise as Price Recovers

Data from Coinglass shows $18.21 million in short liquidations and $4.22 million in long liquidations. The higher number of short liquidations suggests a move upward triggered forced exits from bearish trades.

This came after the price briefly dipped below $2,920, an area where liquidity had built up. That move triggered long entries for some traders and helped drive a recovery toward the current level near $3,000.

Key Levels in Focus

Ethereum is now facing resistance near the $3,055 area. According to trader Lennaert Snyder, if price fails to push higher or shows weakness here, a short setup may appear. 

he noted,

He also pointed to $3,076 as another area to watch. A sweep above that level followed by rejection could lead to further downside. If price moves lower, support levels are seen around $2,850 and $2,750. Snyder also mentioned the $2,800 level, stating he plans to enter long trades there “when price tests that” and shows signs of reversal.

Ethereum remains in a tight range, with traders watching for a move above or below key levels as the FOMC minutes approach.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.