- Ethereum breaks $3,900 with strong volume and bullish momentum accelerating.
- RSI hits 82.12 as MACD signals strength, but caution urged near $4K resistance.
- $55.3M in ETH liquidations, mostly shorts, adds fuel to ongoing upward pressure.
Ethereum (ETH) continued its impressive climb on July 28, crossing the $3,900 threshold and signaling strong bullish sentiment. This surge reflects a daily gain of 3.84%, pushing the price to $3,921.35.
With rising volume, intense trading activity, and a favorable technical setup, ETH now stands on the edge of a potential breakout toward the critical $4,000 mark. While momentum indicators support further gains, traders must remain cautious as key resistance levels approach.
Uptrend Gains Strength Amid Strong Volume
The day’s trading began with ETH hovering around $3,789.80. Initially, the price dipped, testing intraday support, but soon reversed course. The breakout above $3,790, a former resistance level, marked a significant shift. It transformed into solid support, giving bulls the base to sustain the uptrend.
ETH posted higher lows throughout the session, a classic sign of continued strength. As the price climbed steadily, it encountered minor consolidations near $3,850. This zone proved critical, offering several support bounces during intraday pullbacks.
The rally intensified later in the day, breaching $3,900 both a psychological and technical level. With ETH now trading at $3,921.35, the focus shifts to whether it can challenge the $4,000 zone without retracing.
Technical Indicators Signal Caution Despite Uptrend
Momentum remains strong, confirmed by the MACD indicator. The MACD line stands at 306.6, well above the signal line at 286.4. The positive and widening histogram reflects increasing bullish strength, reinforcing the breakout narrative.
However, the RSI tells a different story. At 82.12, ETH enters deep overbought territory. Historically, such readings often lead to short-term corrections or sideways movement. Yet in strong bull phases, RSI can remain overbought for extended periods without a pullback.
Liquidation Spike Reflects Bullish Dominance
In the past 24 hours, ETH liquidations totaled $55.3 million. Of this, short liquidations dominated at $41.9 million. This massive figure indicates that bears were caught off guard by the rally. Perpetual contracts accounted for the majority of the action, with Bybit and Binance each recording nearly $20 million in liquidations.
This liquidation wave added fuel to ETH’s price climb, forcing shorts to cover positions. Such conditions often lead to further short squeezes if momentum persists.
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