As of June 4, Ethereum was trading at around $1,772, putting the focus squarely on its downward liquidation zones. Momentum indicators on the daily chart continued to signal weakness, raising the importance of the $1,500 area in the short term.
Deep liquidation zone stretches to $1,500
Latest data reveals that the primary liquidation cluster for long positions in Ethereum now extends down to $1,500. These zones often become focal points for volatile price movements, especially as leveraged positions face collateral pressure. When the market approaches these clusters, heightened volatility is a frequent outcome.
Mini glossary: Liquidation occurs when an exchange automatically closes a leveraged position due to insufficient collateral. A liquidation cluster is a price range where numerous positions are simultaneously at risk of forced closure.
Market observer TedPillows highlighted that Ethereum’s zone of long liquidations reaches all the way to $1,500. According to this analysis, liquidity may be scarcer below that level, making upward liquidity zones the next points of attention if further downside occurs.
Analyst TedPillows explained that the long liquidation cluster for Ethereum stretches down to $1,500, and that limited liquidity remains below this level.
However, this does not mean $1,500 will act as an unbreakable support. The data simply highlights where forced liquidations would intensify in the event of a deeper pullback. As a result, many trading desks are likely to wait for additional confirmation before adjusting their strategies.
Ongoing pressure on the daily chart
On the daily Bitstamp chart, Ethereum remains below the Fibonacci level of $2,229, which stands out as a major resistance for buyers. The inability to reclaim this area has weakened recent recovery attempts.
A broader look at price structure shows a distinct downward trend, with lower highs and lower lows following the peaks above $4,500. Current analysis suggests that buyers have not yet regained control in the daily timeframe.
The first major support zone lies between $1,750 and $1,800. If the price closes a day below this band, the focus could quickly shift to $1,650, and then to the crucial $1,500 liquidation area. On the upside, $1,900 and $2,000 represent initial obstacles for any attempted bounce.
| Level | Role |
|---|---|
| 1,750 to 1,800 USD | First support zone |
| 1,650 USD | Lower support |
| 1,500 USD | Liquidation and liquidity cluster |
| 1,900 to 2,000 USD | Initial resistance zone |
| 2,229 USD | Main resistance |
RSI and MACD signal no confirmed recovery yet
On the daily chart, the RSI indicator currently reads 18.44, a figure pointing to heavy selling pressure and that Ethereum is in oversold territory. Yet, this alone does not guarantee an imminent trend reversal; a continuation of selling could lead to further weak closes and a prolonged decline.
The technical outlook finds the RSI holding at 18.44 while the MACD indicator remains in negative territory, indicating that any recovery in the daily timeframe has yet to be confirmed.
The MACD is also generating a bearish signal in this timeframe. With the MACD line below its signal line and the histogram still negative, momentum remains weak. For a more bullish technical scenario, these lines would need to stabilize and ideally cross upward.
For a more decisive rebound, analysts emphasize that Ethereum would first have to reclaim the $1,900 and $2,000 levels before targeting $2,229. Only above this threshold would new resistance zones at $2,500, $3,055, and $3,340 come into focus. On the downside, the spotlight remains on the $1,650 support and the critical $1,500 liquidation cluster should $1,750 fail to hold.
