Ethereum price faces key 50 SMA test after another $822M liquidation wave

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ETH rebounds as the 50-day SMA comes into focus

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Mykhailo Ihnatenko

16 hours ago

Ethereum price faces key 50 SMA test after another $822M liquidation wave — Ethereum remains volatile as liquidations hit both longs and shorts

Ethereum is rebounding after another heavy liquidation wave, but leverage remains unstable on both sides of the market. The next test is whether buyers can reclaim the 50-day SMA and turn the bounce into a broader recovery.

Crypto markets went through another major bout of deleveraging over the past 24 hours. CoinGlass data during the morning showed roughly $821.8 million in liquidations, with about $689.7 million coming from long positions.

Ethereum was among the assets hit hardest. An earlier snapshot showed around $169 million in ETH liquidations, again with longs accounting for most of the total. Yet after dropping toward $2,400, the price recovered quickly above $2,500, and the rebound began forcing some short positions out of the market as well.

If the recovery extends, traders who opened shorts during the latest leg lower could face additional pressure. In other words, the leverage flush may not be over yet, its direction could simply reverse along with the price.

Institutional flows remain weak in the meantime. According to SoSoValue, spot Ethereum ETFs recorded $85.40 million in net outflows on October 12, extending the losing streak to 10 consecutive trading days.

ETH rebounds from $2,400 as the 50 SMA comes back into focus

As noted earlier, the risk of another move lower remained elevated. Ethereum retested the $2,400 area, but sellers failed to establish a sustained break below it, allowing the price to recover relatively quickly above $2,500.

The next major obstacle now sits around $2,560, where horizontal resistance converges with the 50-day SMA.

A break through that area followed by a sustained hold above it over the coming days would give the rebound stronger technical confirmation. In that case, the next target would be resistance near $2,630.

The setup would be invalidated by a drop and sustained move below $2,450. That would hand control back to sellers and shift attention once again to the $2,400–2,350 zone.

Volatility is likely to stay elevated

The next few weeks are unlikely to be quiet for Ethereum. CPI, U.S. earnings season, Treasury-yield swings and geopolitical developments could all shift risk appetite quickly and trigger another round of repositioning across leveraged trades.

Several liquidation waves have reduced some of the excess leverage in the market, but that does not necessarily mean volatility will fall. ETH may instead move into a period of sharper two-way swings, particularly around major macroeconomic releases.

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