Whales Facing Liquidations as Ethereum Prices Fell Below $3,700

Key Insights:

• Ethereum price dipped below $3,700, forcing whale liquidation near $3,654.
• The Whale lost $3M as ETH liquidation triggered leveraged sell-off.
• $4,000 resistance continues to reject bullish momentum.

The recent intra-week slide under the $3,700 on the Ethereum price has sparked high volatility for traders.

A whale recently suffered losses totaling nearly $3 million before being liquidated at $3,654.77, according to Lookonchain data.

The whale had established a long position of 131.9 million at $3,685.10 with 35803.89 at a 32x leverage. The downward wick of Ethereum to 3,654.60 on July 22 triggered the liquidations.

Ethereum Price Breaks Support

On-chain and spot trading activity show bearish sentiment. The Ethereum price stood at $3,706 as of press time, a 2.22% drop. This decrease puts the Ethereum price at a local level of support, which has seen price cushioning in previous drawdowns.

However, the recent liquidation event shows weaker buyer power in stressful conditions.

Short-term Ethereum price charts show a steep sell-off. However, the downtrend has now turned upside with a slight recovery. The $3,830 and $3,860 zones currently hold resistance. This likely paints institutional selling pressure at about $3,800.

On the market structure front, the volatility in the last 48 hours and the constant rejection show a short top. Margin utilization currently exceeds 213%.

Some support is forming around $3,680-3,700. The price hit below that range a tiny bit during the liquidation event. These sweeps are standard when the market makers come to cause a cascade of liquidations and clean up liquidity before a turn.

If Ethereum can regain and sustain itself above the value of $3,720, the next hurdle falls at $3,800-3,850. Any rejection will form a retest to either $3,600 or further down to almost all-time support of around 3,500.

The daily table shows more substantial support at this level. The resiliency of such a rebound will lie in the magnitude of the volume behind it.

Technical Indicators Show Indecision on the Ethereum Price

On the other hand, the Stochastic RSI (3,3,14,14) displays oversold conditions, standing at 96.97 and 91.72. An overbought condition could trigger a technical correction despite the strong bullish indication.

However, as CoinMarketCap data shows, the daily ETH volume is 44.42 billion USD, down 4.73% over the last 24 hours.

Such inconsistency in volume during price action shows that the conviction to sell has lessened, however, not quite to the point of turning the overall trend.

Ethereum Price Facing Wider Resistance at 4k

The recent drop in the price of Ethereum is part of a bigger technical background. The $4,000 is still another historical resistance for the Ethereum price.

Michael Van de Poppe doubts if the Ethereum price will crack it all at once. The analyst predicts a correction before a move up.

Any bullish trend will likely continue after more structural accumulation around the low end.

The future direction of the Ethereum price remains unpredictable. The whale positions are not only predictive of sentiment but also a possible source of forced market activity.

ETH’s longer-term bullish case has not been shaken, especially since it participates in Layer 1 usage and smart contracts implementation. However, market players anticipate a stop hunt and possible resistance at $4,000 in the short term.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.