Plenty of Short Liquidations Stacked Above ETH $2,550

I was looking at BTC and pulled up the ETH order book, and the upside looked different. In my last post I said 2,547 was the next level, and today I took a proper look at what sits above it.

Starting with the daily, there's a line of higher highs running from 1,850 in mid-June up to 2,547 on August 21. That line passes near 2,600 today. The weekly MA50 is at 2,583, and the thickest sell orders on the book sit at 2,558. So all three are lined up side by side between 2,550 and 2,600.

On that alone, it looks heavy, but look inside and it's a bit different. There are more than $10 million in short liquidations stacked at each of 2,544 and 2,569. Sell orders and shorts sitting at the same level means that once price pushes up into it, the liquidations actually work to drive it higher. BTC, which I looked at yesterday, had long liquidations stacked below, but ETH is the other way around.

Below, there's a bid at 2,400, and long liquidations are clustered between 2,376 and 2,411. I should address the April high of 2,465. In my last post I thought price had established itself above it, but over five days it closed above twice and below three times. Yesterday it closed below too, at 2,443. It wasn't a firmly held level yet. Range-wise, price is swinging between 2,356 and 2,533.

So the thing to watch this week is whether it closes above 2,550. If it does, the short liquidations stacked overhead help fuel the move; if not, it slides back toward 2,400. A close below 2,400 would invalidate this rally setup.

For reference, over the past day of trades, large orders kept selling. In the last hour, though, they flipped to the buy side. Either way, this is a spot that will move fast once a direction is set, so it's easier to have your game plan set in advance.