Ethereum Price News: Bear Trap Could Finally Kick Off Rally to $2.8K

Ethereum (ETH) has gone up by 3% in the past 24 hours as President Trump said this morning that he was pausing his strikes on the Iranian power grid for five days.

The price of ETH spiked in the past hour, pushing the top altcoin above a key resistance at $2,150 briefly as the market reacted to the news.

Short liquidations surged to $270 million in the past 60 minutes alone as a result of the move. Other altcoins experienced similar upticks, including Solana (SOL), whose price rose above the $90 ceiling for a moment too.

ETH closed the past 5 out of 6 daily sessions at a loss as the selling pressure mounted following a strong rally past the $2,150 resistance.

Powell’s Presser Last Week Derailed Cryptos’ Attempt to Recover

The market is showing signs that it is ready for a stronger recovery, and today’s sharp uptick could be setting the stage for a bull trap if the American session accompanies the move.

Sellers have been running out of steam after weeks of dumping cryptos. Last week, Ethereum-linked exchange-traded funds (ETFs) saw $60 million in withdrawals after breaking a 6-day streak of positive net inflows from March 10 to March 17.

Market sentiment had improved, as the Fear and Greed Index stepped out of “Fear Mode” and into “Neutral” territory. However, comments from the head of the Federal Reserve after the central bank’s interest rate decision derailed the recovery.

Daily Buy Signal Still in Play if American Session Keeps Ethereum Above $2,150

Looking at the daily chart, our signals system sent a buy signal days ago as ETH broke above $2,150. These are “decisional” candles that indicate institutional and whale participation in a specific price move.

The fact that this signal popped up after the price broke through a key level is quite relevant, as it could be an early signal of an upcoming trend reversal.

However, since the latest retreat pushed the price below this mark, we still need to see how today’s uptick plays out.

If the American session manages to push ETH above $2,150, liquidations will spike to much higher levels, causing a short squeeze in the short term and allowing the top altcoin to recapture this key level.

The Relative Strength Index (RSI) in this higher time frame had already spiked to 66, which is commonly interpreted as a buy signal as well. We’ll have to wait and see how today’s session unfolds before jumping to conclusions.

Rally Toward $2,800 Possible If ETH Breaks This Key Resistance

Heading to the hourly chart, we can see that the selling pressure quickly ramped up as ETH tried to break past $2,150.

The hourly candle left behind a big upper wick, confirming that this is still a major ceiling. As stated previously, the American session needs to accompany this move and blow up that resistance to get ETH moving toward the target we set forth recently at $2,800.

In that scenario, we would be looking at a 30% rally for ETH over the next few weeks, primarily fueled by a massive short squeeze.

In contrast, if the price dips after this failed breakout, that would confirm a resumption of the downtrend that started last week, and ETH would risk a drop to $1,800, meaning a potential 16% loss ahead.