Ethereum (ETH), the second-largest cryptocurrency by market cap, is currently facing a bearish outlook as it has formed a bearish price action pattern on its daily timeframe. Despite this, long-term holders and investors are taking advantage of the market sentiment and accumulating tokens, as reported by the on-chain analytics firm Coinglass.
$321 Million Worth of ETH Outflow
Data from spot inflow/outflow has revealed that exchanges have experienced an outflow of over $321 million worth of Ether tokens during Ethereum’s ongoing price decline. This significant outflow during a bearish market suggests a potential accumulation phase, which could lead to buying pressure and a potential upside rally.
Traders Strong Bets on Short Positions
Intraday traders are aligning with the current market sentiment, with data from Coinglass showing strong bets on the short side. The two major liquidation levels are near $2,680, where traders hold $73.50 million worth of long positions, and $2,780, where traders hold $325 million worth of short positions. This data indicates the bearish sentiment prevailing in the market, leading to a continued price decline.
Current Price Momentum
Ethereum is currently trading near the $2,690 level, experiencing a 1.30% price drop in the past 24 hours. However, the trading volume has decreased by 25%, reflecting lower participation from traders and investors amidst the bearish market sentiment and ongoing uncertainty.
Ethereum (ETH) Technical Analysis and Upcoming Level
Technical analysis from experts suggests that Ethereum has turned bearish as it failed to hold above the crucial support level of $2,800 and continues to decline. Based on recent price action and historical momentum, if ETH closes a daily candle below the $2,700 level, there is a strong possibility of a 20% decline to reach the $2,200 level in the future. Additionally, ETH’s Relative Strength Index (RSI) is near the oversold area, indicating a bearish trend and the potential for further price drops.
In conclusion, Ethereum is currently facing a bearish outlook with potential for further price declines. However, the accumulation of tokens by long-term holders and investors during this phase could lead to buying pressure and a potential upside rally in the future. Traders are heavily betting on the short side, contributing to the ongoing price drop. It is essential for investors to closely monitor the market dynamics and technical indicators to make informed decisions regarding their Ethereum holdings.