ETH Crash Ahead?Liquidation Map Turns Bearish at $3.2-$3.4K

Key Insights:

• ETH hits key resistance and reverses, with long liquidations stacking around $3,200 to $3,400.
• Liquidation heatmap shows bearish pressure building, as buyers fail to hold above $3,171 support.
• Elliott Wave analysis suggests local top is in; lower supports may be tested next.

Ethereum’s current price movement shows growing downward pressure. According to recent data from Bitcoinsensus, the ETH liquidation heatmap is now signaling a bearish setup. The chart reflects a steady decline over the past three days, with price cutting through a key range between $3,200 and $3,400. This zone is packed with long liquidations, suggesting many traders entered high-leverage long positions that are now being wiped out.

The data shows a lack of strong buying activity in these areas. As ETH moves deeper into this liquidity cluster, more forced liquidations are triggered, adding to the selling momentum. The trend indicates that the market may be clearing overleveraged positions, increasing short-term downside risk.

Resistance Zone Pushes ETH Lower

Another chart analysis from More Crypto Online points to a possible price top. ETH has retraced to a known resistance zone, between $3,349 and $3,548, which aligns with common Fibonacci retracement levels. Price failed to break above this zone and has since started pulling back.

This pullback suggests that the move may have completed either wave (B) of a corrective pattern or an extended wave 4, according to Elliott Wave structure. If this pattern holds, the next phase could be a deeper decline. Support levels to monitor include $2,626 and $2,258, with a lower range extending to around $1,820. These areas could be tested if downward momentum builds.

Triangle Breakout Setup Under Pressure

In contrast, a separate chart from Ali Charts shows ETH breaking out of a triangle formation on the daily timeframe. This pattern often points to a potential rally, with a target set near $3,730. The breakout point was around $3,171, which is now acting as a key support level.

Price has since dipped below this point, raising questions about whether the breakout will hold. If ETH fails to reclaim the $3,171 level soon, this setup could break down. One market watcher noted, “If price doesn’t hold above that line, the upside target could be in doubt.”

Market Split Between Bearish and Bullish Signals

Ethereum was trading around $3,095.28, with a 2.3% drop over the past day. Despite gaining 4.5% in the past week, the recent rejection at resistance and growing liquidations are putting pressure on price.

The market is now caught between two setups: one favoring further downside due to forced long liquidations and failed resistance attempts, the other pointing to a bullish breakout that now risks being invalidated. The $3,171 level may act as a pivot. Price action around this line could determine whether ETH resumes its uptrend or continues its slide toward lower support zones.

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.