Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The FOMC meeting on October 31/November 1 could bring volatility.
- Cluster liquidity existed between $1700 and $1750, in addition to critical open liquidity of $1813.
The meetings of the US Federal Open Market Committee (FOMC) are associated with significant price volatility in the crypto market. Over the past three days, the market has been in a ballpark ahead of its next meeting on November 1.
Read Ethereums [ETH] Price forecast 2023-24
In particular Ethereum [ETH] consolidated recent gains above $1700.
A previous ETH price analysis leaned towards additional gains above $1800. Although ETH saw a slight price increase, it faced price rejection in the previous mid-range, around $1850.
These are the key levels to consider prior to the Fed’s decision.
Will ETH stay above $1700?
Source: ETH/USDT on TradingView
Liquidity on the 4-hour chart was between $1713 and $1758 (orange). It meant that the area was crucial for traders as an entry or exit point for trading setups.
On the zoomed-out 4-hour chart, the recent price increase faltered around the mid-$1851 range, the previous range formation we saw in July/August. So the crucial levels to watch prior to the Fed’s decision were the $1713 – $1758 levels (orange) and the previous range formation levels.
Noteworthy: over 99% of rate traders expected unchanged Fed rates, so a recovery in the liquidity area above $1700 could be feasible. But bulls need to consider the overhead hurdles at range-low ($1816), mid-range ($1851) and range-high ($1887).
Alternatively, extreme bearish sentiment if the Fed’s decision turns hawkish (increasing rates), then ETH sellers could drag the altcoin below $1700. The breaker block at $1640 (cyan) will be the next support in such a downside scenario.
The CMF and RSI were at equilibrium levels, meaning that capital inflows and buying pressure were average and prices could move in any direction.
Significant open liquidity of $1813
Source: Hyblok
How many Worth 1,10,100 ETHs today?
Hyblock data showed that open liquidity of leveraged traders (blue lines on the Liq profile) was on the higher side. One crucial liquidity level was $1813, which in short liquidations would be worth more than $108 million if the price reached this level. Others were at $1827 and $1844.
The crucial value of $1813 was close to the low in the $1815 range and meant that the near-term recovery could be derailed at the low in the range. But a dovish stance from the Fed on November 1 could push ETH to regain the range low and aim for higher resistances.