Ethereum Price News: Long Squeeze Will Likely Push ETH $1,800 – Here’s Why We Are Still Bullish

Ethereum (ETH) has gone down by nearly 5% in the past 24 hours alone, as the crypto market is experiencing one of its strongest single-day liquidations in a while.

According to data from CoinGlass, $1.35 billion worth of long positions in the crypto market were wiped out during this period.

The only driver that comes to mind that could justify today’s risk-off move would be Strategy’s sale of a tiny portion of its Bitcoin stash.

That said, Ethereum ETFs show that market sentiment has soured. Investors have been taking money out of these vehicles for more than 12 days in a row. In total, these vehicles have shed more than $600 million during this period.

Meanwhile, the Fear and Greed Index is nearing “Extreme Fear” mode at 26, as most other cryptocurrencies are experiencing sharp drops.

Macroeconomic and Geopolitical Variables Are Not Helping Cryptos Either

The situation in the Middle East seems to be getting worse, and investors may see no end in sight.

President Donald Trump said that he “does not care” about Iran walking away from negotiations.

Meanwhile, Tehran threatened to keep the Strait of Hormuz blocked, showing a lack of fear for the consequences that this could bear to the country if the U.S. decides to resume its strikes.

Today’s only economic data point was the JOLTs Jobs Opening survey for April. This metric beat analysts’ expectations for the month with 7.62 million vs. 6.88 million that the market expected.

A higher-than-expected number of job openings indicates that the economy is performing strongly, which reduces (even more) the odds of a rate cut in the near term.

This market has already discarded the possibility of a cut this year, and strong economic data is not doing any good to change that view.

Risky assets like cryptocurrencies appear to be reacting negatively to a combination of headwinds, rather than focusing on the big picture – in our view, at least.

Weekly RSI Signal Says “Buy” If ETH Drops to $1,800

Heading to the charts, we have been tracking a buy signal in the weekly charts for months now. Every time the Relative Strength Index (RSI) has dipped below 30, the market has made its cycle bottom.

This signal applies to BTC and other tokens as well. However, in ETH’s case, we like that the signal has featured a 100% win rate as the price has never made a lower low – at least not in the last 8 years.

We don’t see any reason to expect otherwise this time, especially as market conditions are not worse than they were back in 2022 when interest rates were rising and FTX had recently gone out of business.

What we envision is a retest of the $1,800 level. This happened once during this 8-year window, and the price started to rally right after. Hence, if we expect a repeat of these historical patterns, we should see ETH rallying over the next 3 to 6 months.

Our long-term target for the top altcoin is $5,400 – $6,000 based on how the token has performed in previous cycles.