Ethereum hits both $1600 and a hurdle: What now?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Ethereum reclaimed the mid-range of $1600 but hit an obstacle.
• Crucial sell limit orders were at $1650, $1700, and $1800.

Ethereum [ETH] posted about 5% gains after rising from $1550 on 12 September to $1630 at press time. But further gains could be derailed as price action hit a roadblock, slightly above the mid-range level. 

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On the contrary, Bitcoin [BTC] was yet to reclaim its mid-range of $27k as of press time. Although such a BTC move could boost ETH’s prospects, bulls must clear this hurdle to gain leverage. 

Can ETH bypass the $1650 hurdle?

Source: ETH/USDT on TradingView

ETH’s impressive recovery pushed it to reclaim the mid-range near $1600. But it hit a daily bearish order block (OB) of $1623 – $1660 (red). Besides, the daily timeframe’s market structure was bearish unless ETH climbed above the previous lower high of $1670. 

So, sellers could exploit the roadblock and ease ETH to the 50-EMA (Exponential Moving Average), the mid-range of $1609 or $1550. 

But bulls could gain market leverage if ETH closes above $1670. Such a move could tip ETH to target $1700 or the range high of $1715. 

Meanwhile, the RSI has labored below the 50 mark since mid-August, reinforcing increased bearish pressure over the same period. However, the CMF stayed above zero in September, underscoring positive capital inflows in the first half of September. 

Major sell limit orders placed at $1650, $1700 and $1800

Source: Mobchart

The $1650 level, which coincided with the bearish OB mentioned above, had significant sell limit orders at press time, as Mobchart shows. Other major sell limit orders were also placed at $1700 and $1800, as shown by the long red lines. So, a price reversal was likely at these three levels. 

How much are 1,10,100 ETHs worth today? 

In addition, there were more liquidations of long positions in the last 4 hours before press time. It captures a building bearish pressure at the roadblock.

Besides, the liquidation map indicated the $1646 level, within the roadblock, as a key liquidity area and could further cement a price reversal possibility. 

Source: Coinglass