Ethereum: What’s next for ETH after losing $1600?

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

• ETH misplaced maintain of $1600 on 9 October and did not reclaim it. 
• Lengthy positions suffered >$5 million in liquidations 24 hours earlier than press time. 

Bears overwhelmed markets after the September FOMC Minutes on 11 October. Consequently, the elevated bearish bets noticed Ethereum [ETH] retest the August low of $1550. 

Learn Ethereum [ETH] Worth Prediction 2023-24 

In a earlier ETH worth prediction revealed on 9 October, AMBCrypto accurately projected that sellers might prolong shorting good points to $1550 – An August low. 

However ETH bulls tried to defend the August low at press time. Nevertheless, liquidation information at hand steered the bullish defence of $1550 might be weakened. 

Liquidity on worth charts at $1600

Supply: ETH/USDT on TradingView

The prolonged drop on 9 October left a worth imbalance and liquidity on the every day chart at $1595 – $1616 (white). A D1 breaker blocker of $1623 – $1660 (crimson) sat proper above the liquidity space. Collectively, the 2 marked areas might act as hurdles for bulls. 

However total, ETH’s worth motion fashioned a descending wedge sample, a typical bullish formation. Sadly, the overhead hurdles should be cleared for ETH to reclaim $1700. 

A crack beneath August lows ($1550) might shift focus to trendline assist close to $1516 or the every day bullish OB at $1400 fashioned on 10 March 2023. 

The CMF was unfavourable regardless of the tried reversal, and different key worth chart indicators, RSI and OBV, had been unfavourable. It meant capital inflows weakened, alongside a decline in shopping for strain and Spot market demand for ETH. 

Extra ETH lengthy positions liquidated

Supply: Coinglass

Liquidation information from Coinglass indicated over $5 million ETH lengthy positions had been forcibly closed (liquidated) throughout main exchanges inside 24 hours earlier than press time. Over the identical interval, solely $2.5 million had been rekt, reinforcing a Futures market bearish sentiment.

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So, ETH sellers might breach the August low if the bearish strain persists within the subsequent few days. 

Nevertheless, a latest report indicated that main ETH whales had been shopping for the dip, which might affect a probable mid-October reversal.