The crypto market has been sluggish in recent days, with both Bitcoin and Ethereum prices experiencing significant sell-offs near resistance levels. Although the ‘Uptober’ trend has seen a resurgence in recent days, whale players have not missed any opportunities to book their profits and exit the market profitably. This sentiment has created strong selling pressure and significantly strengthened the resistance level.
Ethereum’s $1,650 Stand Amid the ‘Uptober’ Mirage
Despite the bullish ‘Uptober’ predictions that indicated a bullish October for the crypto market, Ethereum struggled with bearish dominance. The expected uptrend, which saw a glimmer of hope in the early days of the month, is now fading due to Ethereum’s bearish price action. You could say that ‘Uptober’ is now becoming just a mirage.
Ethereum’s struggle to keep trading above $1,650 has become apparent amid a massive sell-off by whale investors. This activity has significantly weakened buyer confidence, with Coinglass liquidation data revealing over $12.5 million in long liquidations just minutes after ETH price faltered, failing to stay above $1,630.
Data from IntoTheBlock points to a rise in large trades yesterday, with whales suddenly becoming active following a $10 drop in ETH price from $1,639 to $1,629. The metric rose from $1.38 billion to $1.7 billion, an increase of $320 million. This increase in the number of large trades was due to whales taking positions, which was a key factor in the recent decline and further weakened the support level.
Notably, the Ethereum Foundation, an entity in the development and ecosystem of the Ethereum network, recently divested some of its allocated Ether (ETH) tokens. The grant issuer executed a sale of 1,700 ETH in exchange for 2.738 million USDC on the decentralized exchange Uniswap at 16:18 UTC+8.
Will Bulls turn around?
Ether faced a notable rejection at the USD 1,640 resistance after the USD 1,650 resistance weakened. After hitting a low of $1,585, the price experienced a reversal following aggressive buying from buyers. Currently, ETH price is trading at $1,594, down more than 2.1% from yesterday’s price.
The 20-day Exponential Moving Average (EMA) of $1,627 is currently trending down, with the Relative Strength Index (RSI) hovering around the oversold zone at 31. These indicators collectively indicate selling sentiment in the market.
However, ETH price has staged a small recovery against the pattern’s support line. Should the price maintain its current momentum, the bulls will make another attempt to break the immediate resistance at $1,650. A successful break would result in ETH price testing the $1,744 level.
Conversely, if the price continues to decline and falls below the pattern line, it would imply that the price could trigger a bearish consolidation. In this scenario, ETH price may test buyers’ patience at $1,530.