Ethereum is trading near $1,772 with a significant long-side liquidation cluster extending down to $1,500. Weak daily momentum, indicated by RSI and MACD, suggests potential for further downside before upside liquidity attracts attention. Traders are monitoring key support and resistance levels, with the $1,800 to $1,750 range acting as immediate support.
Ethereum is currently trading around $1,772, with analysts observing a significant long-side liquidation cluster that extends down to the $1,500 level. This cluster indicates potential for increased volatility as leveraged traders face margin calls. The daily chart shows weak momentum, with the Relative Strength Index (RSI) at approximately 18.44, placing Ethereum in deeply oversold territory. This oversold condition, while not confirming a trend change, could support a relief bounce. The immediate support area is identified between $1,750 and $1,800. A sustained move below this range could lead to further declines, potentially exposing levels at $1,650 and then $1,500. On the upside, resistance is noted at $1,900 and $2,000. Analysts suggest that once downside liquidity levels thin out, upside liquidity could become more attractive, potentially leading to sharp price movements as the market shifts between these liquidity areas. The broader trend remains weak after a significant fall from highs above $4,500, with Ethereum making lower highs and lower lows on the daily timeframe.
The proximity of a large liquidation cluster near $1,500 highlights the risk of significant price drops due to forced selling, while weak momentum suggests a lack of immediate buying pressure, potentially prolonging the downturn before any substantial recovery.