Ethereum short sellers are looking to profit at $1,700

  • Ethereum price is being controlled by short-sellers.
  • The global rout in cryptocurrencies is not halting amid another weekly loss. 
  • A trend line and flat bottom are setting up ETH for another leg lower.

Ethereum price cannot escape from the global rout currently present throughout the cryptocurrency sector, a few exceptions notwithstanding. Short sellers are still searching for areas where they can take profits, and buyers continue prospecting for the best entries to long ETH.

Ethereum price has a few handover levels ready where buyers can take over

Ethereum price has been on a rampage the past few days. Whipsaw price action happens when sellers repeatedly take over from buyers at very logical entry levels.

On Monday, June 12, a first test of the red descending trend line was the queue for shorts to start selling ETH. They were able to push Ethereum price below the past week's S1 support pivot. In the meantime, the 200-day Simple Moving Average came in to act as resistance, making sure that for the rest of the week ETH could not recover above it.

On Wednesday, buyers in ETH attempted an outbreak but got squeezed out of their longs on Thursday when sellers returned with a large volume just above the 200-day SMA. 

Today, Ethereum price is set to stay below the S1 support pivot and is looking for a retest of Wednesday's low at $1,841.75. Just below that level, ETH has the S2 support pivot at $1,808.13, so expect some profit-taking here from short sellers.

ETH/USD daily chart
ETH/USD daily chart

If in the next couple of days a break higher fails on that red descending trendline, expect more sellers to come in and try to push the price towards $1720.84. That level has already been tested on May 23 and June 23. 

These levels should be an excellent handover from sellers to buyers. If cryptocurrencies could get some favorable tailwind, a retest and break higher of the red descending trendline would be successful.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

SafeMoon price looks to skyrocket 30% as technicals flash buy signal

A brief technical and on-chain analysis on SafeMoon price. Here, FXStreet's analysts evaluate where SAFEMOON could be heading next.

More Bitcoin news

Uniswap price eyes 20% gains as UNI technicals scream ‘buy'

Uniswap price faced a blockade at $21.51, slowing its recovery. The RSI reveals a bullish divergence in play, hinting at a 20% climb. A breakdown below $18.37 will invalidate the bullish thesis.

More Litecoin news

Litecoin contemplates 17% ascent after reclaiming crucial barrier

Litecoin price experienced the second flash crash, which bottomed on September 21. While the descent was steep, the recovery seems to be coming along well. The recent upswing has pushed past a key resistance level, but LTC needs to hold above it to confirm buyers’ presence.

More Litecoin News

XRP price flips massive support floor into formidable resistance

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple behaves as it trades below key resistance.

More Ripple news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast