Ethereum prices have been going back sharply as liquidation liquidation, whale sales and changing market sentiment pushed the crypto market into terror territory.
summary
- Ethereum fell below $4,200, down 6.8% in 24 hours, and volume surged 124% to $32.5 billion.
- Derivative activity has skyrocketed, but open interest has diminished as the position has been settled at $495 million.
- Technical shows ETH test support of nearly $4,160, with resistance ranging from $4,400 to $4,500.
At the time of writing, Ethereum has fallen 6.8% in the past day, trading at $4,173. The seven-day ranges from $4,206 to $4,659, with the asset losing 10% last week and 12% over the past 30 days.
The sale coincides with a sharp increase in trading activity. Ethereum (ETH) 24-hour volume rose 124% to $32.5 billion. Derivative trading reflects surges, up from 183% to $93.8 billion, according to Coinglas data. However, open interest fell 5.2% to $60.2 billion, indicating that traders are taking a closed position rather than adding new positions.
The imbalance was evident in the liquidation, which wiped out the $495 million ETH position in the past day.
When a whale sells, emotions weaken
For the first time this month, the market has entered the territory of “terror” as the Crypto Fear & Greed Index fell to four points. Some large owners have moved coins to exchange, according to chain data showing increased seller pressure from whales. This means that short-term pricing measures are driven by risk aversion and profit acquisition.
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Last week, the Federal Reserve’s 0.25% interest rate cut was the first in nearly a year, but previously Ethereum rose. That spike quickly pushed ETH to $4,700 before the recent decline. September has historically been one of the worst months for cryptocurrency returns, and the latest reversal appears to have continued.
Despite immediate pressure, increased catalysts such as Fusaka upgrades, as well as increased access to facilities through the exchange sales funds and corporate Treasury, could increase the market in the fourth quarter. Some analysts continue to forecast runs above $5,000 by the end of the year if macro conditions are leveled.
Ethereum price technology analysis
The short-term bearish trend is strengthened by ETH’s technical break below the 20-day moving average. Both momentum and MACD indicators are in the sales area, with relative strength index close to 40, approaching an excess, but not fully elevated.
Ethereum Daily Chart. Credit: crypto.news
Bollinger Bands shows they are price testing a low band that is close to $4,160. Immediate support is $4,150, and the break could reveal $3,800. The advantage is that ETH must regain the $4,400 level to revive bullish emotions. A critical move above $4,500 can bring the pass back to $4,700.
read more: Ethereum Details Launching Fusaka Upgrades
