Despite the multitude of events currently going on in the U.S Banking sector, we are now seeing a massive short squeeze occur in the crypto market with big coins like BTC and ETH up more than +17% and +11% respectively in just today’s trading alone!

The bullish run to the upside is caused by the large demand for cryptocurrencies from crypto institutions and exchanges as more and more crypto companies are converting their reserves from stable coins (that are backed by fiat saved in the bank) to BTC/ETH.

And as far as this Stable Coin to Crypto conversion continues to go on, we expect to see the rally persist. In this Ethereum analysis, we will be breaking down the key levels we are currently watching as well as what the ETH price might be getting ready to do in the coming days.

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ETH Attempting To Make A New High!

The Ethereum bullish rally has pushed the Altcoin price to a key level we have been struggling to break through all through the year 2023!

Every time we have seen the Altcoin price test this $1,701 resistance, it fails to break out making it one of the most important resistance to keep an eye on in the coming days!

If the ETH bulls want to keep on fueling this bullish rally for Ethereum, we need to see the ETH price break and close above this $1,701 key resistance first.

This $1,701 key resistance has been defended by ETH bears for so long now that once it gives way, there is a very high probability that we might see a massive rally to the upside as short sellers get liquidated.

So for now, we are keeping an eye on this to see what happens. Are the bulls strong enough to finally break through this $1,701 key resistance or will we see another sell-off from here?

Final Verdict!

The Ethereum price is currently experiencing a massive short squeeze to the upside as demand for ETH and BTC continues to rise. This rise in demand is because of crypto institutions pulling out their reserved funds from the crashing U.S. banking sector and converting them into crypto.

The question now is “is the rally from this demand finally over?” to answer, we will be watching the $1,701 key resistance level in the 4–hour timeframe.

For the ETH rally to continue, we need to see the Altcoin price breakthrough and close above this key resistance in the coming days.

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