The price of Ethereum (ETH) remains pressured, but the key support at $3,850 could lead to a new price increase towards $6,000.
Support at $3,850
Currently, Ethereum is trading at $4,298.89 with a 24-hour trading volume of $31.90 billion. The token has declined by 2% over the last day and 6% over the past week. Remaining within a rising channel, ETH is starting to consolidate, which is viewed as a re-accumulation phase.
Tension Among Short Positions
The market shows a large cluster of short positions that could be liquidated if the price breaks above $4,450. Current data indicates that cumulative short positions amount to nearly $9.3 billion. A breakout could prompt waves of buying pressure.
Breakout Signals on Monthly Chart
On the monthly chart, ETH is testing resistance near $4,450, the upper boundary of a three-year ascending triangle. Current signals suggest the potential for a significant move once this level is broken, with long-term targets ranging between $14,000 and $20,000.
It is important to note that maintaining the $3,850 support level is critical for Ethereum's continued growth. Current market conditions and breakout signals may signify major changes in price behavior in the near future.
