Ethereum's long liquidation zone now stretches down to $1,500, according to latest on-chain data. This price range holds a dense cluster of leveraged long positions, meaning a drop to this area could trigger cascading forced liquidations. Market observer TedPillows noted that liquidity is scarce below $1,500, making upward liquidity zones the next focus if further downside occurs.
Liquidation Cluster Reaches $1,500, Liquidity Becomes Key
Liquidation happens when an exchange automatically closes a leveraged position due to insufficient collateral. A liquidation cluster is a price range where many positions face simultaneous closure risk. TedPillows highlighted that Ethereum's long liquidation cluster extends down to $1,500, with limited liquidity beneath that level. However, this does not mean $1,500 will act as an unbreakable support — the data merely indicates where forced liquidations would intensify during a deeper pullback. Multiple trading desks are likely waiting for additional confirmation before adjusting strategies.
Daily Chart Shows Clear Pressure: $1,750-$1,800 Is First Defense
On the daily Bitstamp chart, Ethereum remains below the Fibonacci level of $2,229, which stands as major resistance for buyers. Failure to reclaim this area has weakened recent recovery attempts. Price structure reveals a clear downtrend with lower highs and lower lows after the $4,500 peak. Current analysis suggests buyers have not regained control on the daily timeframe.
The first major support zone sits between $1,750 and $1,800. If the daily close falls below this band, attention would quickly shift to $1,650 and then to the critical $1,500 liquidation area. On the upside, $1,900 and $2,000 represent initial obstacles for any bounce attempt.
| Level | Role |
|---|---|
| $1,750–$1,800 | First support |
| $1,650 | Lower support |
| $1,500 | Liquidation/liquidity cluster |
| $1,900–$2,000 | Initial resistance |
| $2,229 | Major resistance |
RSI Stuck in Oversold Territory, MACD Still Bearish
The daily RSI reads 18.44, a deeply oversold level indicating heavy selling pressure. Yet oversold alone does not guarantee an imminent trend reversal — continued selling could lead to weaker closes and prolonged decline. The MACD also flashes a bearish signal: its line sits below the signal line with the histogram still negative, showing weak momentum. For a more bullish technical scenario, these lines would need to stabilize and ideally cross upward.
Analysts emphasize that for a decisive rebound, Ethereum must first reclaim $1,900 and $2,000 before targeting $2,229. Only above that threshold would new resistance zones at $2,500, $3,055, and $3,340 come into play. On the downside, the spotlight remains on $1,650 support and the critical $1,500 liquidation cluster if $1,750 fails to hold.