Ethereum (ETH) 
$2,398, the largest altcoin, has recently reached a significant threshold and is entering a decisive period for future price movements. Experts suggest that if ETH cannot maintain its current price levels, a downturn could be inevitable. Market participants are closely monitoring the situation as the price approaches this critical juncture.
Ethereum Price Analysis
Despite forming a rising triangle pattern on the four-hour price chart, Ethereum remains under the influence of a downward trend. Given the current price movements, if it closes below the $2,680 level, a drop to $2,560 could become likely.
Additionally, Ethereum’s daily price chart indicates trading below the 200-day exponential moving average, suggesting that the largest altcoin may continue its downward trajectory in the medium term.
However, if Ethereum manages to surpass the $2,730 mark, it could reignite a bullish market. Breaching this level might enable the price to move upward in the coming days.
Liquidation Risks Worry Traders
The potential for a price drop in Ethereum poses a significant risk, particularly for leveraged traders. Data indicates that there are $72 million worth of long positions at the $2,657 level. Should the price fall below this threshold, all these positions could be liquidated from the market.
Moreover, there are also $275 million worth of long positions at the $2,730 level. If the ETH price fails to reach this level and continues to decline, a large liquidation wave could lead to significant losses for traders.
Therefore, it is recommended that traders monitor their leverage ratios and the volatility in the market closely.
