Ethereum (ETH) Price Insights: Here’s What to Expect as Market Volatility Grows

Key Insights:

• While Bitcoin (BTC) price dipped 3% on Wednesday, Ethereum (ETH) price has a relatively stronger showing as it held steady at $1560 
• On-chain data from IntoTheBlock shows that crypto traders have piled on orders to purchase 556 ETH at the current prices, outpacing sell orders. 
• Technical indicators suggest that ETH is in a prime position to hold the $1,500 support level in the days ahead.

While Bitcoin’s (BTC) price dipped 3% on Wednesday, Ethereum (ETH) price had a relatively stronger showing as it held steady at $1560. Vital on-chain and technical indicators suggest that ETH is in a prime position to hold the $1,500 support level in the days ahead.

Demand for Ethereum Grows Across Exchange Spot Markets 

The crypto market experienced intense volatility on Wednesday. But interestingly, Bitcoin (BTC) and Ethereum (ETH), the two largest megacap cryptocurrencies, trended in opposite directions. 

While BTC price shrunk 3% on October 11, Ethereum price held its ground at the $1,560 mark. A vital on-chain indicator has revealed this was due to spot traders mounting buy-orders for ETH across several crypto exchanges. 

IntoTheBlock’s Aggregate Exchange Order Books chart, shows that traders have mounted orders to buy 573,000 ETH coins around the current prices. And in comparison, sellers have only put 456,000 ETH up for sale. 

The chart above shows the aggregate ETH buy/sell order placed across 20 crypto exchanges including Binance and Coinbase. It shows that currently, market demand for Ethereum has exceeded supply by nearly 120,000 ETH. 

Typically, when the demand for an asset exceeds supply, it puts upward pressure on price, since sellers have to raise their bids to get their orders filled quicker. 

If this narrative holds, traders can anticipate mild ETH price upswing and strong support around the $1,500 territory in the days ahead.

ETH Price Prediction: $1,500 Psychological Support Could Strengthen. 

From an technical perspective, ETH looks set to experience a neutral daily price trend, consolidating within the narrow $1,535 and $1,570 range. 

In the daily time frame, Ethereum price stood at $1565 after recording a daily increase of 0.65%, as the weekly decline stood at 4.5%. Meanwhile ETH’s trade volume is currently at $4.8B dropping 13% on Wednesday, suggesting the downtrend intensity may cool off. 

Also, the Bollinger bands are diverging, showing rising volatility levels on Ethereum Price. The Relative Strength Index (RSI) is moving below the neutral line, edging closer to the oversold region. 

In summary,, ETH price can find initial support at $1,535 if the industry-wide bearish tailwinds intensify. Failure to hold that level could trigger a retest of the $1,500 territory.  

But on the upside, $1,620 is the key resistance level to watch. A break above that level, could give the bulls momentum to push for $1,710. 

However, strategic investors will also keep an eye out for the upcoming US Consumer Price Index (CPI) reports.