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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.
- ETH entered a price consolidation similar to the price action in the first quarter of 2023.
- Massive buying interest from $1580 – $1600, while sellers target $1680 and $1700.
The crypto market has generally remained calm since the August slump. In particular, Ethereum [ETH] extended its price consolidation above $1600 – a mid-level in the first quarter of 2023. A recent AMBCrypto report explored the possibility of whale action as a likely determinant of ETH’s next major price move.
How many Worth 1,10,100 ETHs today?
What’s next for ETH?
Source: ETH/USDT on TradingView
We found that Ethereum’s current price action coincided with the formation of the Q1 2023 range of $1500 – $1715 (orange parallel channel). In early September, ETH failed to move above the 50-EMA (Exponential Moving Average) on the 4-hour chart.
Thus, the 50-EMA was a critical near-term dynamic resistance. But the bulls have defended the mid-level around $1600 since August, limiting ETH in the upper range for the past two weeks.
Based on key technical indicators, there could be some selling pressure. Global net liquidity has been stable since September 1, but declined from September 5. It meant that the global financial market tightened from September 5 and that could affect capital inflows, as evidenced by the easing CMF over the same period.
Meanwhile, the RSI reached the median level and could face rejection, especially after price action hit the dynamic resistance of the 50-EMA. In the South, the $1580, $1550 and the low of $1500 are important levels to watch.
On the other hand, bulls could move forward but falter on the range high near USD 1700.
Huge buying interest in $1600 – $1580 area
Source: Mobchart
According to Mobcharta real-time order flow tracking platform, there was significant buying interest for ETH at $1600, $1580 and $1560 on Binance Exchange (Spot), as evidenced by the extended green lines.
On the sell side, short sellers were targeting $1700 and $1680. However, the cumulative delta was sideways, meaning that neither buyers nor sellers had absolute market control. That calls for caution.
Is your wallet green? look at the ETH Profit Calculator
On the liquidation side, key liquidation levels were at $1645, $1670 and $1703. This meant that the price could react at or near these levels as ETH hovers above USD 1600.
Below USD 1600, the price may react at or near USD 1612, USD 1597 or USD 1588.
Source: Coinglass
