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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Ethereum recaptured the mid-$1600 range but hit a roadblock.
- Crucial sell limit orders were $1650, $1700 and $1800.
Ethereum [ETH] posted a gain of about 5% after rising from $1550 on September 12 to $1630 at the time of writing. But further gains could be derailed if price action hits a roadblock just above the mid-level.
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On the contrary, Bitcoin [BTC] had yet to regain its mid-range of $27,000 at the time of writing. While such a move by BTC could improve ETH’s prospects, bulls must overcome this hurdle to gain more influence.
Can ETH bypass the $1650 hurdle?
Source: ETH/USDT on TradingView
ETH’s impressive recovery saw ETH regain the mid-range of almost $1600. But it reached a daily bearish order block (OB) range of $1623 – $1660 (red). Moreover, the market structure of the daily time frame was bearish unless ETH climbed above the previous low of $1670.
So, sellers could exploit the roadblock and take 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 push ETH to target $1700 or the range high of $1715.
Meanwhile, the RSI has remained below 50 since mid-August, reinforcing increased bearish pressure over the same period. However, the CMF remained above zero in September, underscoring the positive capital inflows in the first half of September.
Large 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 the time of writing, as Mobchart shows. Other large 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.
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Moreover, there were more liquidations of long positions in the last 4 hours before press time. It shows building bearish pressure on the roadblock.
Furthermore, the liquidation map indicated the $1646 level, within the roadblock, as a key liquidity area, which could further strengthen a price reversal opportunity.
Source: Coinglass