Ethereum Rejected at $5K, What’s Next for ETH Price?

Ethereum (ETH) recently hit new highs, with prices approaching $5,000, but the excitement was short-lived. In a typical move in the volatile crypto market, Ethereum's price skyrocketed to $4,955 before sharply reversing.

The rejection at $5K and the subsequent liquidation of $300 million in long positions have left traders wondering what’s next for ETH. Let’s dive into the current situation and the possibilities for Ethereum’s price over the next 24-48 hours.

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Ethereum Price Rejection at $5K: What Happened?

Ethereum's price nearly hit the $5,000 mark recently, spiking to $4,955 before facing a sharp downturn. This price action caught many traders off guard. After briefly touching the $4,885 mark, it seemed like Ethereum had reached its peak.

However, as usual, the market had one last trick up its sleeve. Ethereum surged to $4,955, but this rally was short-lived.

As the price topped out, Ethereum quickly rolled over, leaving behind traders caught in long positions, resulting in $300 million in liquidations. This massive sell-off triggered a correction, and Ethereum is now trading around $4,356, far from its previous highs.

This price action suggests that while Ethereum has shown impressive growth, there is still significant volatility in the market. Despite the pullback, Ethereum's potential for future growth remains, but the current market environment is uncertain.

Ethereum's Price Next 24-48 Hours: Will It Hold?

The big question on everyone's mind is: will Ethereum hold its ground or continue to slide? There’s a critical support level that Ethereum must maintain for a potential bounce. Below the current price, there are two significant lows that traders are watching.

If these levels are breached, Ethereum could face a deeper correction before any potential rally.

However, it's important to note that the price rejection at $5K isn't the end of the road for Ethereum. The price action we’ve seen recently is a classic example of market manipulation and the fickleness of crypto markets.

The question now is whether Ethereum's H2 demand zone will hold. If it does, there could be an opportunity for Ethereum to reclaim higher levels. Conversely, if this support fails, Ethereum might dip further before attempting another rise.

It’s a situation full of uncertainty, and Ethereum traders will need to remain agile in these volatile conditions.

The $300M Longs Liquidated: A Warning for ETH Traders

The $300 million in long positions being liquidated in just one hour is a clear indication of the market's volatility and the risk involved in trading Ethereum. Long positions are those where traders bet on Ethereum's price rising.

When the price reverses sharply, those positions get liquidated, leading to further price drops as the market adjusts.

This liquidation event occurred amidst expectations that the Federal Reserve might cut rates, which had fueled a risk-on sentiment in the market. Yet, despite the broader optimism, Ethereum’s rally failed to sustain, and whales began to dump their holdings.

It’s a stark reminder for investors that while cryptocurrency offers massive upside potential, it also carries a high level of risk. This incident might make traders hesitant to open long positions in the short term, as the market continues to exhibit such volatile behaviour.

READ ALSO: Ethereum Sets New All-Time High as ETFs Hit Records

Ethereum Price Prediction: Hold or Sell?

With Ethereum’s rejection at $5K and the ongoing market uncertainty, many are left wondering whether to hold or sell their ETH. Given the current conditions, it’s crucial to assess the situation from both a technical and fundamental perspective.

Technical Analysis

Ethereum is currently in a critical range. If it holds above the $4,300-$4,400 zone, it may have the chance to rally again. However, if the support level breaks, Ethereum could fall to test the next support levels below $4,000.

Fundamental Analysis

The broader market sentiment is still relatively positive, with many traders anticipating a Fed rate cut. If that happens, risk assets like Ethereum might see another boost. But for now, the market remains uncertain, and Ethereum’s price is at a crossroads.

Traders should stay informed about market developments and be prepared to make quick decisions in this volatile environment. Ethereum could either bounce back or continue to correct, so careful risk management is key in the coming days.

Conclusion

Ethereum’s rejection at $5K is a reminder of how quickly the crypto market can change. With $300 million in liquidated long positions and Ethereum currently sitting at $4,356, the next 24-48 hours will be crucial for determining if Ethereum can regain its upward momentum or if further dips are in store.

For now, Ethereum is showing signs of holding its ground around the $4,300-$4,400 level. However, the market remains unpredictable, and Ethereum could either bounce back or face a deeper pullback. Traders and investors need to remain cautious and monitor the situation closely.

Interested in trading Ethereum and other cryptocurrencies? Start trading now on Bitrue Exchange, and stay updated with the latest crypto news on Bitrue Blogs.

FAQ

What caused Ethereum’s rejection at $5K?

Ethereum faced a sharp reversal after hitting $4,955, and the subsequent liquidation of $300 million in long positions triggered the price drop.

What are the key support levels for Ethereum?

Ethereum is currently holding near the $4,300-$4,400 support zone. If it fails to hold this level, Ethereum may test lower levels.

Should I hold or sell my Ethereum?

It depends on market conditions. If Ethereum holds its current support, there could be an opportunity for a bounce. However, if it falls below support levels, it may be better to wait for a clearer signal.

What’s next for Ethereum’s price?

Ethereum's next movement will depend on whether it can maintain support. If the support level holds, a rally could follow. However, further downside is also possible.

How does the market sentiment affect Ethereum’s price?

Market sentiment, such as Fed rate cuts and broader crypto market trends, plays a crucial role in Ethereum's price. Positive sentiment could push Ethereum higher, but the market remains volatile.