Ethereum Price Analysis: Critical Support at $1.5K Could Drive Drop to $1.1K

Ethereum’s price analysis indicates a critical support level at $1,500. If breached, it could lead to a sharp decline towards $1,000. A death cross has formed, indicating bearish trends. Price movements are also affected by liquidation clusters identified in on-chain data, suggesting potential targets for bearish traders. Users are advised to conduct personal research before investing.

Ethereum’s current market status exhibits a pronounced downtrend, which has momentarily stabilised at the critical $1,500 support level. This level is integral for Ethereum’s short-term performance, although a breach below it could trigger a rapid decline towards the $1,000 mark.

Daily Chart Analysis: The prevailing bearish momentum for Ethereum has steadied at around $1,500, leading to a phase of sideways trading with limited volatility. This support zone not only has historical significance but also psychological implications for traders. The emergence of a death cross, where the 50-day moving average (MA) dips below the 200-day MA, highlights heightened bearish sentiment. Should the $1,500 support fail, the price could swiftly drop to around $1,100.

4-Hour Chart Overview: On a shorter time scale, Ethereum is observed trading within a descending price channel, oscillating between preset boundaries. A rebound from the lower trendline recently spurred a minor bullish rally. However, Ethereum is now nearing the channel’s upper boundary around $1,700, facing indications of resistance. Given the subdued market activity, any renewed selling pressure might jeopardise the ongoing correction and push Ethereum down below the $1,500 support, targeting the $1,000 zone in the coming weeks.

On-Chain Metrics Examination: Insights from the Binance liquidation heatmap indicate potential price targets due to the clustering of liquidity zones, which generally attract market actions. Ethereum’s current consolidation has resulted in a notable clump of liquidation points positioned just beneath the $1,500 support. These levels, primarily associated with long-position liquidations, present lucrative targets for institutional sellers. An uptick in selling could push Ethereum into this liquidity area, triggering further liquidations and exacerbating downward momentum towards the $1,000 club.

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