Ethereum eyes $2.9K - Traders, should you expect the rally to cool down?

Ethereum

Ethereum eyes $2.9K – Traders, should you expect the rally to cool down？

Ethereum [ETH] led the altcoin surge, rallying 47% in five days. During this time, BTC was up 7.9%. Predictably, this saw the Bitcoin Dominance drop from 65.36% to 62.38% in six days. The altcoin market added $232 billion during the same period.

The Pectra upgrade was attracting more than just retail investors. It also witnessed selling pressure with whale deposits into centralized exchanges.

Ethereum nears the 50% retracement level- breakout, or…

Source: ETH/USDT on TradingView

The OBV had been in a steady downtrend throughout the year. That changed over the past month, and the trend reversal on the OBV was a sign that buyers were dominant. The CMF agreed with this finding.

Its reading was at +0.25, indicating heavy capital inflows to the market. The MFY was also rising, to show bullish momentum and capital flow. However, the indicator did not form a bearish divergence on the 1-day chart yet.

Therefore, there was more room for Ethereum to rally. The Fibonacci levels plotted based on the 2025 downtrend showed that the 50% level at $2,774 was nigh.

Source: Coinglass

The liquidation map highlighted the lack of short liquidations overhead. High leverage long positions were open, and a drop to $2.4k and $2.5k would wipe out many of these positions.

This meant traders should be wary of a southward liquidity hunt.

Source: Coinglass

The 6-month liquidation heatmap showed the $2.9k region was a strong magnetic zone. ETH was headed to this level sooner or later, but a breakout beyond it was not a guarantee.

Bullish Bitcoin [BTC] and macroeconomic conditions might need to line up with an ETH move to $2.9k to catalyze a move beyond the $3k psychological resistance.

Source: Coinglass