Ethereum price shaken by market decline This caused it to once again lose the $1,900 support level and spark speculation about the near-term market outlook. In response to the decline, investor sentiment has shifted to a more cautious direction, and market trends have remained steadily bearish.
Bearish momentum continues in the Ethereum market
Ethereum market trends continue to be heavily tilted to the downside, just as the broader cryptocurrency environment has taken a very bearish turn. Signs of this scenario include signs of global capitulation. Major altcoins and networks.
Joanne Wesson, author and founder of Alphactal, an on-chain data analytics platform, said: shine light on About the current market state of ETH after investigating multiple indicators. Key signs such as realized/unrealized losses and declining demand metrics indicate that more investors are exiting positions due to pressure.
Data from Alpha AI shows that while the Coinbase Premium Index is declining, long positions are increasing. The increase in leveraged longs indicates that traders are betting that the recent weakness will be replaced by upward momentum and that they are poised for a rebound.
At the same time, on-chain data is beginning to show signs of capitulation. Current flows indicate defensive investor behavior and waning rather than new belief. accumulation. Wesson also highlighted other key areas and indicators that reinforce the idea of bear market dynamics for ETH.
The first indicator is the whale-to-retail delta, which shows that retail investors are heavily positioned on the long side. The liquidation level heatmap reflects the high leverage within the system. ETH open interest (OI) is decreasing and active addresses continue to disappear.
On-chain volume is flagging as an active drop, and NUPL is currently showing a surrender signal. Given these bearish signals, Wesson emphasized that the next drop could likely spur base formation. This means: Ethereum In the short term, it may enter an accumulation phase.
Return to the bottom of Bollinger Bands
In the current market situation, Ethereum price appears to be moving in the same direction as Bitcoin price. According to According to market analyst and investor Guangdong Cat, the lower bound of the Bollinger Bands has just been reached as both crypto assets are contracted as support. However, the direction of the Bollinger Band Squeeze has not yet been determined.
As a result, Guangdong Cat pointed out that the bulls may want to go more sideways to make the 20-day SMA flatter, which would give it a better chance of reversing as support. On the other hand, bears would be hoping for further follow-through of the current price action and a lower low coming soon, but that has not happened yet.
At the time of writing, ETH price was trading at $1,826 after falling more than 3% in the past 24 hours. Despite the slowdown in price trends, trading volumes have turned bullish again, increasing by more than 29% during the same period.
Featured image from Pixabay, chart from Tradingview.com
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