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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.
