ETH Holder Liquidated for $11.15 Million After Misjudging Market Move

• Ethereum saw an $11.15 million liquidation after a price surge from $2,632.83 to $2,796.79.
• Ethereum’s price is consolidating at $2.8K resistance, with potential decline if it fails.
• A bearish “death cross” on moving averages suggests further price declines if resistance holds.

A recent high-stakes gamble in the Ethereum market ended in a massive $11.15 million liquidation. The trader, who sold their Ethereum holdings expecting a price drop, faced a dramatic reversal as the price of Ethereum (ETH) surged by 6.23%, from $2,632.83 to $2,796.79.

BREAKING: SOMEONE WHO SHORTED $ETH GOT LIQUIDATED FOR $11.15M pic.twitter.com/cvxQTeguOS

— DEGEN NEWS (@DegenerateNews) August 23, 2024

Ethereum’s Price Action and Consolidation

Ethereum has been grappling with the $2.8K level, the lower boundary of a multi-month wedge pattern. This level has acted as a significant resistance point, hinting that the current pullback might be nearing its conclusion.

After a recent retracement towards this resistance, the price has entered a consolidation phase. The low volatility observed near this resistance suggests that market demand has been insufficient to push the price higher.

This indicates that the pullback could be winding down. If Ethereum could face a decline towards the $2.1K support level if it continues to struggle with the $2.8K resistance.

This support area is critical; a failure to maintain this level could lead to further price drops. The persistent supply pressure at $2.8K indicates that a rejection at this point might be likely.

Moving Averages and Bearish Signals

Adding to the bearish outlook, the 100-day moving average is approaching a crossover below the 200-day moving average, forming a “death cross.” This technical pattern is often viewed as a bearish signal.

The death cross chart pattern typically suggests that the price may face further declines if the $2.8K resistance holds. With Ethereum struggling at crucial resistance levels and bearish signals from moving averages, traders should stay cautious.

The next few weeks will determine whether Ethereum can overcome the resistance or it will slide towards lower support levels.

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