🌐 Right now, ETH has broken through its 5-year sloping resistance and is trying to consolidate above it. Will it succeed, or is this a short squeeze and the right time to close positions?
Right now, purely technically, everything points to a correction:
🟣 A GAP has formed at the $3,613 – $2,978 levels. As we know, 99% of GAPs close sooner or later.
🟣 Breaking through major multi-year resistance without increased volumes is often a short squeeze and a bull trap for your longs.
🟣 Purchase volumes have diverged from the price, with the price rising since early April and purchase volumes continuing to decline since then. This shows a decline in overall interest in ETH, despite all the record inflows into ETFs.
🟣 However, the Money Flow indicator, on the contrary, shows that new liquidity continues to actively flow into the asset, indicating new interest in ETH. However, this does not change the fact that the overall purchase volume is declining.
Above us, we expect significant resistance at the $4,100 level, which is likely to be reached and broken before a real correction begins.
⚡️ What is the outcome?
There is real euphoria in the market right now, with altcoins flying up +50% per day. By the way what we are actively taking advantage of in our Telegram channel and have traded 🔥 +$2,655 today alone! Link in profile description, subscribe so you don’t miss out on the opportunity to make this bullrun profitable, before bear market comes! 🔥
As for the market, don’t forget that the hotter the market, the sharper the dips will be. Soon there should be one of them, a powerful and sharp long squeeze to remove the overheating from the market. But I don’t think it will happen before we update the local ATH.
Have a nice day, everyone!
