The crypto market leverage flush continues this week as Bitcoin, Ether, and other major cryptocurrencies are in the red.
Ethereum has fallen nearly 4% in the past 24 hours and risks falling below $1,900 if the bearish trend continues.
Thanks to the recent bearish performance, more than $300 million worth of leveraged positions have been wiped out of the crypto market since Tuesday.
Ether’s bearish performance comes despite the whales slowly returning to action as they accumulate coins during the selloff.
Whale resumes additional purchases $ETH
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Whales was one of the biggest sellers of Ether earlier this month as the second-largest cryptocurrency by market capitalization fell to the $1,700 range.
But now the whales are starting to gather again. According to data obtained from CryptoQuant, the whale or wallet balance is between 10,000 and 100,000. $ETH I started buying on the spur of the moment last Wednesday.
Between February 4th and 8th, these entities totaled more than 520,000 $ETH.
During that period, individual investors (wallets holding between $100 and $1,000) $ETH and 1K to 10K $ETH) 233K sales $ETHThis means buying pressure from whales has exceeded selling pressure from retail investors for the first time since the beginning of the year.
Prices typically rise sharply when retail selling pressure subsides and whales continue to buy.
However, market conditions remain bearish and Ether is at risk of falling below $1,900.
moreover, $ETH Net taker trading volume on virtual currency exchanges has returned to negative territory after briefly turning positive last month.
This suggests that shorts are once again accumulating positions in the market.
This metric is very important because it tracks the difference between purchases between buyers and sellers. $ETH Futures trading using market orders.
lastly, $ETH Coinbase Premium has been trading at a discount for the past three months, suggesting continued selling pressure from US investors.
Ether May Retest $1,740 Support Level
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of $ETHThe /IUSD 4-hourly chart is bearish as Ether has lost 14% of its value over the past 7 days.
Following the bearish performance, Ether traders have recorded over $96 million in long-term liquidations since Tuesday.
$ETH There was a rejection near the $2,100 resistance level on Saturday and it is now below the psychological level of $2,000.
The bearish trend may continue further and rise $ETH Heading towards Friday’s low of $1,740.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) on the daily chart are near the oversold region, indicating that bearish momentum is prevailing.
However, if the $1,740 support level holds in the short term; $ETH The price may revisit the $2,100 resistance level in the coming days.
Beyond this resistance level, $ETH Rising towards February high of $2,380.
Market conditions remain sluggish and may be affected $ETHwill recover in the short term.
