- Ethereum rebounds above $2,500 after $822 million in crypto liquidations, with the 50-day SMA near $2,560 posing the next major resistance.
- Continued ETF outflows and market volatility could threaten the recovery if ETH fails to break above resistance.
Ethereum has rebounded above $2,500 after another wave of crypto market liquidations wiped out roughly $821.8 million in leveraged positions over 24 hours. However, continued outflows from spot Ethereum ETFs and resistance near the 50-day SMA could limit the recovery.
Data from CoinGlass showed that long positions accounted for approximately $689.7 million of the total liquidations, meaning traders betting on higher prices suffered the biggest losses. Ethereum was among the hardest-hit assets, with an earlier snapshot showing around $169 million in ETH liquidations.
After falling toward $2,400, ETH recovered above $2,500, raising the possibility of further short liquidations if the price continues to climb. The next key test is whether buyers can push Ethereum above the $2,560 resistance area and sustain the recovery.
Ethereum Price Faces Resistance Near $2,560
Ethereum’s recovery has brought the $2,560 level back into focus. This area combines horizontal resistance with the 50-day SMA, making it an important level for traders watching the next price move.
A sustained break above $2,560 could strengthen the recovery and open the way toward the next resistance near $2,630. Holding above this level over the coming days would provide stronger evidence that buyers are regaining control.
However, failure to clear the resistance could leave ETH vulnerable to another decline. A sustained drop below $2,450 would weaken the recovery and bring the $2,400 to $2,350 range back into focus.
Ethereum ETF Outflows Extend to 10 Days
Institutional demand remains a concern for Ethereum’s recovery. According to SoSoValue data, spot Ethereum ETFs recorded $85.40 million in net outflows on October 12, extending their outflow streak to 10 consecutive trading days.
The continued withdrawals suggest that institutional demand has yet to provide meaningful support for ETH prices. Without a stronger return of inflows, Ethereum could struggle to maintain its recovery, particularly if broader market conditions deteriorate.
The contrast between the price rebound and persistent ETF outflows leaves the market facing mixed signals. While buyers have defended the $2,400 area, institutional flows have yet to confirm a sustained shift in sentiment.
Ethereum Volatility Could Remain Elevated
Ethereum could face further price swings in the coming weeks as traders respond to US inflation data, corporate earnings, Treasury yield movements and geopolitical developments.
Recent liquidation waves have reduced some of the leverage in the market, but they have not necessarily removed the risk of further forced selling. A continued price recovery could trigger short liquidations, while renewed weakness could put leveraged long positions under pressure again.
For now, Ethereum’s ability to reclaim the 50-day SMA near $2,560 remains a key technical test. A sustained move above that level could strengthen the recovery toward $2,630, while a break below $2,450 would increase the risk of another test of lower support levels.
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