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Will $1700-support help ETH out again?

2min Read

ETH drops to a critical support level, stable since mid-March. Can bulls depend on it again?

Will $1700-support help ETH out again?

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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. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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