Ethereum’s ether has lost 10% of its value over the past seven days, making it the second-worst performer in the top 10 after Dogecoin.
The bearish performance has pushed Ether below $3,000, and technical indicators are pointing to further bearish moves in the short term.
Ether funding interest rate turns negative
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Ether has fallen below $3,000 after losing 10% of its value over the past few days. However, the price decline has not affected Ether’s open interest (OI), which has surged from 12.64 million. $ETH up to 13.3 million $ETH Over the past 24 hours.
An increase in OI indicates that new money is flowing into the market and leverage is increasing.
However, the capital increase may not necessarily be chasing long positions, as Ether funding rates have turned negative over the past few days.
The Ether funding rate is currently -0.003%, indicating that short traders are currently dominating the market.
An increase in OI accompanied by a decrease in funding rates indicates that new capital is flowing into short positions.
This indicator comes at a time when long Ethereum positions are facing intense pressure.
Since the beginning of this week, long-term liquidations have exceeded $610 million, the largest three-day period since Nov. 21.
Similarly, US spot $ETH Exchange-traded funds (ETFs) recorded net outflows of nearly $230 million on Tuesday.
Although the price of Ether has fallen in recent days, whales continue to accumulate more coins.
On-chain data reveals popular on-chain Ethereum whale ‘Trend Research’ is stuck using leveraged borrowing $ETHdrawer 24,555 $ETH Sent by Binance earlier this week and currently holds 651,300 $ETH.
In addition to that, Ethereum treasury company BitMine added 35,628 $ETH Added to that stash while staking an additional 581,920 $ETH last week. The company has a total of $4.2 million. $ETH.
$ETH If the bearish trend continues, it could fall below $2,700.
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of $ETHThe /USD pair is currently bearish after Ether lost 10% of its value since the beginning of the week.
Ether is currently testing the $2,880 support level after falling below the $3,057 support level earlier this week.
A break below $2,880 could push it higher. $ETH Heading towards $2,627, the level that acted as support during the November sell-off.
If the bearish situation persists, the $2,400 support level could come into play in the near to medium term.
The Relative Strength Index (RSI) on the 4-hour chart is reading 37, indicating that Ether is entering oversold territory.
Ongoing trade tensions between the United States and the European Union continue to put pressure on Ether and the broader crypto market.
But if the bull recovers; $ETH It is likely to rally towards the $3,244 resistance level in the next few hours.
If the bullish development continues, $ETH Recovering weekly high of $3,398.