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Ethereum surges 18% as volume jumps 402% – But THESE 2 risks could halt ETH
Ethereum has surged by 18% in the past 24 hours as of writing, pushing $ETH out of its five-week consolidation and extending its weekly gain to 19.65%.
In support of the rally, the altcoin’s trading volume jumped 402% as the price cleared the $2,003 resistance and reached $2,252.80. Meanwhile, the RSI rose to 92.14, indicating that the momentum had been stretched significantly after the extremely fast increase in price.
Additionally, MACD increased sharply, further supporting acceleration as $ETH was moving into a wider trading area than it ever previously had.
However, $2,426.30 now becomes important because sellers previously defended that April supply level. Holding $2,003 would preserve the new structure and keep buyers in control.
Conversely, losing that level would return $ETH inside its former range, weakening the breakout despite the surge in volume.
Can Ethereum’s rally extend toward $2,636?
That breakout now brings Ethereum into the important zone of the rally, where fresh demand must absorb overhead supply.
At press time, $ETH was approaching the $2,431–$2,500 range. This price level is important here since this has been a previous high-price area with significant trading volume. As such, it is also an important swing high.
This zone matters because sellers who previously traded there can re-enter as price returns. Therefore, sustained volume becomes crucial for keeping the advance intact rather than simply extending momentum.
Still, a gradual reset of the RSI toward 60-70 would also be of importance. Especially if Ethereum is continuing to form higher lows while consolidating. This would provide enough cooling-off time for momentum without undoing the broader rally.
If buying interest absorbs selling pressure above $2500, then the focus shifts toward the $2636 zone. This is because this is where another prior support to resistance transition exists.
However, if Ethereum [$ETH] repeatedly fails to get past the $2431-$2500 area, it would show that Ethereum’s rapid advance has reached meaningful resistance.
Can $ETH buyers squeeze $98M shorts?
The resistance test also revealed a contest between aggressive buyers and traders positioned against Ethereum’s advance.
On the 19th of August, Ethereum’s hourly Taker Buy Volume reached $2.55 billion. It was the third-highest hourly reading since the 7th of February.
Such orders consume available sell liquidity. Simply, this shows that as the rally continued, buyers have been accepting higher prices to fill their orders.
However, that pressure is meeting sizeable leveraged opposition. According to Lookonchain data, two Hyperliquid whales hold combined shorts of 50,838 $ETH, worth roughly $98 million.
Their positions therefore turn continued buying into a potential pressure point rather than simply another demand signal. One liquidation level sits near $2,273, placing it directly around $ETH’s advance.
If buying persists, forced short closures could reinforce demand. Otherwise, sellers absorbing these orders would weaken the rally’s underlying momentum.
Final Summary
- Ethereum [$ETH] surged 18% as strong volume confirmed its breakout, bringing the $2,431–$2,500 resistance zone into focus.
- $ETH faces $98M in whale shorts as aggressive buying determines whether momentum can extend toward $2,636.
Source: cryptonews.net