Ethereum’s price has recently decreased by 8%, touching the $3,940 level. Although this dip caused a liquidation of $115 million in long positions, traders are optimistic about a potential breakout toward all-time highs with a target of $10,000.

Key Highlights:

• On Tuesday, Ether dropped 8%, leading to significant liquidations within the crypto market.
• A bullish pattern observed suggests that if Ether can maintain its position above $3,800, it could resume its bullish trend.

ETH liquidation heatmap ETH liquidation heatmap. Source: CoinGlass

Currently, the total liquidations across the market exceed $650 million, with long positions bearing the brunt. Ether’s retracement seems poised to reach its support level at $3,800 before a possible resurgence to prices above $5,000.

Bull Flag Targeting $10,000

The analysis shows that Ether is forming a bull flag pattern, indicating that a breakout could push its price to approximately $10,050, marking a 164% increase from current values. However, failing to stay above the $3,800 mark may trigger further declines.

ETH/USD four-hour chart ETH/USD four-hour chart. Source: Cointelegraph/TradingView

This article does not comprise financial advice. Investments and trading involve risks, and reader discretion is advised.