Ethereum has seen a significant drop in price after facing strong resistance around the $4,700 level. Despite multiple attempts to break above this resistance channel, Ethereum failed to attract enough buyers, resulting in over $90 million in liquidations. However, despite this recent price drop, the overall sentiment for Ethereum remains positive, with promising on-chain data supporting a potential rebound.
In the last 24 hours, sellers have dominated the market, keeping Ethereum below the bullish breakout channel. This led to a sharp decline in the price of ETH and a significant amount of liquidations. According to Coinglass, nearly $90 million worth of ETH was liquidated, with buyers closing around $66.4 million worth of positions. This increased the resistance level, making it difficult for the price to break through.
One interesting development is the record $10 billion worth of Ethereum currently stuck in the validator exit queue. This suggests that stakers are lining up to withdraw their funds from the network, possibly indicating rising profit-taking pressure as Ethereum trades around $4,500, just below its all-time high.
On the institutional side, there is significant demand for Ethereum, which could help offset any bearish pressure on the price. Corporate holders now own about 5.66 million ETH, while spot Ethereum ETFs hold roughly 6.81 million ETH. Together, institutional investors hold over 12.47 million ETH, indicating strong interest in the asset.
In October alone, U.S.-listed spot Ether ETFs saw $621.4 million in net inflows, more than double September’s inflows. Additionally, the open interest for Ethereum has been increasing, suggesting that trading activity continues to rise despite the recent price correction.
The long/short ratio for Ethereum has also increased, with 55.5% of total positions expecting the price to rebound. This indicates a growing bullish sentiment in the market, potentially leading to a bullish reversal in the near future.
As for the price of ETH, it currently trades at $4,466, down over 1.6% in the last 24 hours. If the price can defend the immediate support at $4,400, it could signal the end of the correction phase. In that case, Ethereum may attempt to climb above $4,700 and potentially reach $5,000. However, if the price continues to face resistance, it could fall below the 20-day EMA and potentially drop to the $4,000-$3,700 support zone.
Overall, despite the recent price drop, Ethereum’s on-chain data and institutional demand suggest that a bullish reversal could be on the horizon. Investors should continue to monitor the market for potential buying opportunities and be prepared for possible price fluctuations.