Ethereum (ETH) Price Breaks Out of Months of Sluggish Performance, Setting Off Wave of Liquidations

After months of sluggish performance, the second-largest cryptocurrency posted weekly gains above 30%, reclaiming key price levels and setting off a wave of liquidations across the market.

After months of sluggish performance, the second-largest cryptocurrency has posted weekly gains of over 30%. This move has seen ether reclaim key price levels and set off a wave of liquidations across the market.

As a result, market veteran Peter Brandt has identified a long-brewing bullish formation that may be setting up Ethereum for a critical breakout moment. This formation, an ascending triangle, has been slowly developing over several years and could potentially trigger what Brandt called a “moon shot” scenario.

In his technical analysis, Brandt highlights a trendline that connects Ethereum's 2020 bottom at around $1,000 to its 2025 low, which occurred at approximately $1,100. This trendline has created a rising base for ether, which is now encountering significant overhead resistance at a level of around $1,800.

> After 3+ years of making higher lows- a trendline can be drawn from the 2020 low to the 2025 low. At the 1.8k resistance, a large ascending triangle is forming. A breakout above 2.15 is setting up a classic "moon shot" scenario for #Ethereum- Peter Brandt ( @PeterBrandt)

March 10, 2024

This resistance is formed by the peaks reached by ether in early 2021 and late 2022, presenting a barrier for further upward movement. However, price action above the $2,150 mark has helped to strengthen the bullish case, especially as ETH pushes past $2,400, its highest level in over three months.

Further bolstering the bullish narrative are momentum indicators, which are now leaning in the bulls’ favor. Key moving averages are converging, and while trend strength, measured by ADX, remains moderate, the technical setup looks increasingly favorable for further gains.

The rapid price increase, which was triggered in part by the recent Pectra network upgrade, has also resulted in over $400 million in short liquidations, according to Glassnode. This surge in liquidations attests to the swift and unexpected nature of ether's recovery.

However, ETF flows paint a more cautious picture. U.S.-listed Ether funds have seen three straight days of outflows, suggesting that institutional capital has not yet fully joined the party. Nevertheless, with Ethereum breaking out of a ten-week slump and outperforming Bitcoin, traders will be closely watching to see if ETH can hold above support and continue its climb.

If ether manages to close above the $1,800 barrier and remains above the $2,150 support level, the next leg up could come faster than anticipated, potentially paving the way for a more significant rally in the coming months.