Will $1700-support help ETH out again?

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

• ETH’s weekend dump eased near $1700-support 
• Both shorts/longs positions suffered >$5 million liquidations in the last 24 hours 

Ethereum [ETH] has been on a downward spiral after hitting the Q2 2023 high of $2100. Although the $1700 support has proven stable since mid-March, ETH’s downswings are hitting the DeFi sector hard. 

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

Despite Bitcoin’s [BTC] recent sharp drops and retesting of $25k twice, ETH’s drop hasn’t exceeded $1700. 

Will the $1700 support hold again?

Source: ETH/USDT on TradingView

The larger price action since mid-April chalked a descending channel (white) with an orange mid-range. The initial BTC drop to $25k on 5 June saw ETH drop from the range high of $1915 to $1778, near the mid-range. 

The second BTC drop to $25k over the weekend (10/11 June) saw ETH drop again from near the range high to the mid-range. If sellers don’t crack the mid-range, ETH could rally to the range high of $1825 or $1850. 

If that’s the case, buying at the mid-range level could offer a good risk ratio, targeting the range high ($1825/$1850). The next resistance level above the descending channel is $1935. 

A session close below $1,700 will invalidate the aforementioned bullish thesis. Such a downswing could push ETH to the range low ($1597) or $1500, offering more gains to short-sellers. 

Meanwhile, the RSI retreated to the lower ranges while OBV declined since mid-April, reinforcing the underlying dip in buying pressure and demand for ETH.

Long and short positions wrecked in equal measure

Source: Coinalyze

According to Coinalyze, in the last 24 hours, a total of >$11 million were wrecked, and both long and short positions suffered almost equally, >$5 million each. It denotes a neutral position, meaning ETH price can go either direction. 

Read Ethereum’s [ETH] Price Prediction 2023-24

However, the CVD spot, which tracks buying and selling volumes, eased and moved sideways. It suggests easing selling pressure, but a strong uptick in buying pressure wasn’t registered at press time. 

Besides, the open interest (OI) rates improved slightly from $4.9 billion to $5 billion at the time of writing. Traders should keep tabs on the CPI data for May to be released on 13 June and the U.S FOMC meeting on 13/14 June.