Ethereum is trading around $2,361 as of October 15, experiencing a decline of approximately 2.3% after a significant selloff that saw it drop to a low of $2,316.74. This latest movement has put ETH at a critical juncture, testing a rising trendline that has been in play since the lows observed in June.
This recent downturn marks one of Ethereum’s weakest trading sessions in several weeks. Following a period of relative stability above the $2,500-$2,700 range, the cryptocurrency is now grappling with support in the $2,300-$2,400 area. Traders are closely monitoring this trendline, as a failure to hold could lead to further declines, with the next support zone identified between $1,850 and $1,950.
Chart Analysis
Technical indicators reveal a weakening momentum, as evidenced by the daily Relative Strength Index (RSI) sitting at 34.36, which is nearing oversold territory. Additionally, the Moving Average Convergence Divergence (MACD) is currently negative at -39.12, indicating bearish momentum. For Ethereum to regain its footing, it must first reclaim the $2,400-$2,450 range, with additional resistance looming around the previous support band of $2,500-$2,550.
ETF Flows Reflect Institutional Sentiment
In a concerning trend for Ethereum, U.S. spot ETH ETFs recorded a net outflow of $19.7 million on October 14, following a brief influx of $24.8 million the previous day. This outflow is part of a broader trend, with approximately $715 million exiting these funds since the beginning of the month. This shift indicates a cooling of institutional demand for Ethereum, coinciding with a challenging macroeconomic environment characterized by rising inflation concerns and a firm U.S. dollar.
Long Liquidations Impact the Market
The crypto market has also been hit hard by a wave of liquidations, totaling $959.43 million within a 24-hour period, with $879.71 million stemming from long positions. Over the past 12 hours, liquidations reached $669.25 million, predominantly from bullish traders, highlighting the rapid pace of forced selling as Ethereum’s price dropped below key support levels.
Traders had maintained a bullish outlook, but as ETH lost its critical support, the resulting liquidations accelerated the downward movement. This volatility underscores the inherent risks in the crypto markets, where sharp declines can sometimes be followed by brief relief bounces if selling pressure eases.
The immediate focus for Ethereum remains on the trend support around $2,300-$2,350. Holding this level could pave the way for a potential recovery toward $2,400 and $2,500. Conversely, a breach could see the price testing the lower support zones between $1,850 and $1,950.
