Ethereum price was shaken by the market decline. It lost the $1,900 support level once again on Monday, sparking speculation about the near-term market outlook. After the downturn, investor sentiment is turning more cautious and market dynamics remain firmly bearish.
Bearish momentum continues in the Ethereum market.
Just as the broader cryptocurrency landscape has taken a very bearish turn, Ethereum market dynamics remain strongly tilted to the downside. Some signs of this scenario include signs of surrender. Best altcoins and networks.
Joao Wedson, author and founder of Alphractal, an on-chain data analytics platform, said: shine a light After researching several indicators, we find out about the current market state of ETH. Key signs such as realized/unrealized losses and declining demand indicators indicate an increasing number of investors withdrawing positions due to pressure.
Data from Alpha AI shows that while long positions are increasing, the Coinbase Premium Index is trending lower. An increase in leveraged buying means traders are seeing recent weakness turn into bullish momentum and are preparing for a bounce.
At the same time, on-chain data is flashing signs of capitulation. The current trend is not new, but represents a weakening of investors’ defensive behavior and convictions. accumulation. Wedson also highlighted other key areas and indicators that reinforce the idea of bearish market dynamics for ETH.
The first indicator is the whale vs retail delta. This shows that retail investors are currently focused on buying positions. The liquidation level heatmap reflects the high leverage of the system. ETH Open Interest (OI) It is decreasing as active addresses continue to disappear.
On-chain volume is calling attention to the active decline and NUPL is currently showing signs of surrender. Given these bearish signals, Wedson emphasized that the next pullback could trigger a base formation with strong odds. This means: Ethereum In the short term, you may begin a phase of accumulation.
Move back to the lower Bollinger Band
In the current market situation Ethereum price appears to be moving in the same direction as Bitcoin price.. according to For market analyst and investor Cantonese Cat, both crypto assets reached the lower Bollinger Band with a contract as support. However, the direction of Bollinger Band compression has not yet been determined.
As a result, the Cantonese Cat noted that bulls may want more sideways action to flatten the 20-day SMA further, which could provide a better opportunity for a reversal to support. Meanwhile, bears would like to see further follow-up to the current price action and a lower low occurring soon, but that has not happened yet.
At the time of writing, the price of ETH was trading at $1,826 after falling more than 3% in the last 24 hours. Despite the price decline, trading volume was strong again, increasing by more than 29% over the same period.
Featured image from Pixabay, chart from Tradingview.com
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
