The crypto market has been sluggish in recent days, with both Bitcoin and Ethereum prices facing significant sell-offs near resistance levels. Although the ‘Uptober’ trend experienced a revival in the last few days, whale players have not missed any opportunities to book their gains and exit the market profitably. This sentiment has created strong selling pressure and has substantially strengthened the resistance level.
Ethereum’s $1,650 Stand Amid The ‘Uptober’ Mirage
Despite the bullish ‘Uptober’ predictions that hinted at a bullish October for the crypto market, Ethereum has found itself struggling with bearish domination. The anticipated upward trend, which saw a ray of hope in the initial days of the month, has been now fading due to Ethereum’s bearish price action. One can say that ‘Uptober’ is now becoming just a mirage.
Ethereum’s struggle to maintain trading above the $1,650 mark has been evident amidst a massive selloff by whale investors. This activity has notably weakened buyer confidence, with Coinglass’ liquidation data revealing over $12.5 million in total long-liquidations just minutes after ETH price faltered, failing to hold above $1,630.
Data from IntoTheBlock indicates a surge in large transactions yesterday, with whales suddenly becoming active following a $10 drop in ETH price from $1,639 to $1,629. The metric jumped from $1.38 billion to $1.7 billion, marking a $320 million increase. This uptick in large transactions was due to whales executing positions, serving as a key factor in the recent decline and further weakening the support level.
Notably, the Ethereum Foundation, an entity in the development and ecosystem of the Ethereum network, recently divested a portion of its allocated Ether (ETH) tokens. The grant-issuing body 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 Make A Reversal?
Ether faced a notable rejection at the resistance of $1,640 after the resistance of $1,650 was weakened. After the price reached a low of $1,585, it experienced a reversal following buyers’ aggressive purchases. Currently, ETH price is trading at $1,594, declining over 2.1% from yesterday’s rate.
The 20-day Exponential Moving Average (EMA) at $1,627 is currently displaying a declining trend, with the Relative Strength Index (RSI) hovering around the oversold zone at 31. These indicators collectively suggest a selling sentiment in the market.
However, ETH price has initiated a minor rebound from the pattern’s support line. Should the price hold its current momentum, the bulls will make another attempt to breach the immediate resistance at $1,650. A successful breakthrough would result in the ETH price testing the level of $1,744.
Conversely, if the price continues to descend and falls below the pattern’s line, it would imply that the price might trigger a bearish consolidation. In this scenario, ETH price might test buyers’ patience at $1,530.