Ethereum Primed for Volatility—Traders Brace for Action This Week

ETH’s chart paints a playground for swing traders—liquidity pools flush, derivatives open interest swelling. Forget ’hodl’—this week demands scalpel precision.

Key levels to watch: The $3,800 support zone held last week like a bouncer at a bull market party. Break below? Bears might start queueing. Flip $4,200 resistance? Cue the ’altseason 2.0’ tweets from crypto influencers who called the last top.

Institutional flows tell the real story: Grayscale’s ETHE premium flipped positive for the first time since the Merge. Wall Street’s playing catch-up—as usual.

Pro tip: Watch gas fees. When ETH network activity spikes, it’s like a flare gun signaling big moves. Just don’t get rekt chasing them—the blockchain never forgets.

Closing thought: If traditional finance understood Ethereum’s yield mechanics, they’d fire half their quants. Lucky for them, most still think DeFi stands for ’definitely fictitious.’

Assessing Ethereum’s price action

Source: RektProof on X

In a post on X, technical analyst RektProof observed that ETH could be drawn towards the liquidity around $2,462, before rallying to $2,560. This idea was based on the price action of the past ten days, which saw ETH deviate above $2,745. This surge was followed by a quick slump.

The idea was that these moves were driven by the constant search for liquidity and liquidation levels. As the analyst and AMBCrypto suggested, a MOVE below $2,480 did occur, followed by a bounce to $2,565.

At press time, the attempted rally above the short-term local high at $2,550 was faced with rejection. A sustained move towards its previous week’s high did not materialize, and ethereum continued to trade within the weekend range.

Source: Coinglass

The liquidation heatmap revealed that there was a cluster of liquidity at $2,450. A build-up of liquidation levels at $2,570 was also seen. The latter level has not been swept, and we could see a minor bounce to or just above $2,570.

The magnetic zone below $2,500 would be the next target. The weekend range for Ethereum seemed likely to continue over the week. A drop to $2,450 would offer a buying opportunity, targeting the local highs at $2,800.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion