Ethereum is trading at $1,734 on Thursday, with its MACD histogram sitting flat at zero — a technical setup traders often read as a momentum inflection point. The level marks a moment of indecision: either buyers regain control or sellers push the price lower. Data from crypto markets shows bulls currently have a 60% probability of triggering a short squeeze that could drive ETH toward $1,772. But a daily close below $1,689 would flip the outlook bearish, putting the next support zone under pressure.
What the MACD Zero Means for Traders
The Moving Average Convergence Divergence (MACD) histogram measures the difference between two moving averages. When it crosses zero, it signals a potential shift in momentum. At exactly zero, the indicator gives no clear directional bias — it’s a line in the sand. Traders are watching closely to see whether the histogram pushes into positive territory, confirming bullish momentum, or dips negative, confirming a downtrend. The current price of $1,734 sits near the middle of recent range, adding to the uncertainty.
Short Squeeze Potential in Focus
Open interest data suggests a significant number of short positions are clustered just above the current price. If ETH can break past $1,740 with volume, those shorts could be forced to cover, accelerating a move toward $1,772. Analysts tracking order-book liquidity note that a move above $1,750 could trigger automated buy orders. The 60% probability cited by market observers isn’t a guarantee — it reflects the current imbalance of risk-reward for shorts versus longs. For now, the path of least resistance appears upward, but only if buyers defend the $1,710 area.
The Bearish Risk Below $1,689
If Ethereum fails to hold above $1,689, the technical picture darkens quickly. That level corresponds to a recent low and a key Fibonacci retracement line. A daily close below it would invalidate the short-squeeze thesis and open the door to a test of $1,650 or lower. Volume patterns show sellers have been active near $1,700, and any break below $1,689 could accelerate selling as stop-losses trigger. The next few trading sessions are critical: ETH needs to either push through resistance or risk losing the support that has held for the past week.
Key Levels to Watch
For bulls, the immediate target is $1,772, with a secondary resistance at $1,800. For bears, $1,689 is the line in the sand. A close below that would shift momentum firmly to the downside. The MACD zero line adds another layer — traders will be watching Thursday’s and Friday’s daily closes to see which side gains control. No major Ethereum-specific news is driving the action; the move is purely technical for now.
