As the crypto market crashed in the recent years and liquidation jumped, Ethereum prices have retreated to their lowest levels since August 6th.
summary
- Ethereum prices crashed this week as liquidation spiked.
- The weekly liquidation jumped to about $1 billion.
- Technical analysis points to a 16% drop in the short term.
Ethereum (ETH) fell to $3,800, down 20% from the highest point this month. That decline reflects the performance of other top cryptocurrencies, such as Bitcoin (BTC) and Ripple (XRP).
Ethereum prices crashed when liquidation jumped
One of the main reasons for the plunge in ETH prices is that liquidation jumped to nearly $1 billion this week. A bullish position, over $490 million, was liquidated on Monday as the crypto market crashed.
Another $413 million position was liquidated on Friday, with about $50 million liquidated earlier in the week. Liquidation occurs when the exchange closes the levered position after the margin or collateral has been exhausted.
Ethereum prices crashed when the leaks traded on the exchange jumped. All Spot Ethereum funds have poured over $547 million in assets after adding $556 million a week ago. Rising outflows are a sign of declining demand among US institutional investors.
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The decline has led to new concerns, bringing profits on the Federal Reserve system. Several staff members, including Beth Hammack, John Williams and Raphael Bostic, warned that additional fee cuts could lead to inflation more persistent.
Inflationary escalated Thursday after Donald Trump announced more tariff measures. He plans to add tariffs to other items such as imported drugs, medicines and furniture.
Still, Ethereum has several potential bullish catalysts, including the possibility of a Vanguard invasion into the crypto industry, upcoming upgrades to Fusaka, and the launch of retirement fund investments in crypto.
ETH Price Technology Analysis
Ethereum Price Chart | Source: crypto.news
The daily time frame chart shows that Ethereum has been pulled back from this month’s highest price of $4,978 to below $4,000 today.
It is below the Fibonacci retracement level of 23.6% and the 50-day exponential moving average.
The reduction followed the formation of a triple top pattern with necklines at a retracement level of 23.6%. The distance between the triple top point and the neckline is about 15%.
Measure the same distance from the neckline point and it matches the 50% retracement level. If the price exceeds resistance by $4,400, the bearish forecast is invalid.
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