In the wake of a broad market selloff yesterday, numerous altcoins, Ethereum included, touched their pivotal support levels. However, the sudden comeback of buyers’ interest in combating rising sell pressure facilitated an ETH price bounce from its sturdy support zone. At present, Ethereum’s price is showing bullish on-chain indicators, bringing confidence among those holding long positions.
Ethereum Flashed Big Capitulation Signals
Per Coinglass’ ETH liquidation chart, Ethereum is undergoing both short and long liquidations owing to its mixed price volatility. The data indicates that the ETH price experienced a short liquidation of $4 million and a long liquidation of $10 million following a price move close to the $1,630 mark. This implies a strong battle between bulls and bears to establish a definitive direction for ETH price.
Interestingly, data from Santiment unveils a signal of capitulation for Ethereum. Amidst the massive price plunge yesterday, investors engaged in panic selling, with a majority of traders bowing out at a loss. Remarkably, Ethereum, Shiba Inu, and SushiSwap witnessed their peak levels of trader loss realization (versus profit) throughout the year. This insinuates a significant capitulation for Ethereum and other altcoins, serving as a primary catalyst for the recent ETH price rebound.
However, Glassnode revealed some concerning data as the recent dip to a 1-month low of 19,658.435 in the Number of Transfers (7d MA) could have a bearish impact on Ethereum’s price. A decrease in the number of transfers might indicate a reduced level of trading and transaction activity on the Ethereum network, which can be because of higher gas fees on the network.
Moreover, a 6-month low in addresses receiving ETH from exchanges, at 2,262.839, may hint at decreased buying activity or a tendency to keep assets on exchanges, creating selling pressure on Ethereum’s price.
What’s Next For ETH Price?
Though ether experienced a sharp decline from the resistance at $1,650, it has now rebounded from the support of $1,610, suggesting that bulls are strongly defending the support level. As of writing, ETH price trades at $1,648, surging over 1.9% from yesterday’s rate.
The 20-day EMA at $1,641 is leveling, and the RSI has surged past the midpoint, signaling an advantage for buyers. If the price continues to surge from its present level, bulls will likely attempt to break the $1,745 resistance again. Success in this move could see the ETH price escaping the bearish zone and targeting $1,880.
Conversely, if the price makes a sudden reversal and falls below the trend line’s support of $1,610, it may indicate that the price could witness a heavy selloff and test the support at $1,530.