After a widespread sell-off in the market yesterday, many counterfeit coins, including Ethereum, hit key support levels. However, the sudden resurgence of buyer interest in responding to the rising selling pressure has prompted ETH prices to rebound from their strong support area
After a widespread sell-off in the market yesterday, many counterfeit coins, including Ethereum, hit key support levels. However, the sudden resurgence of buyer interest in responding to the rising selling pressure has prompted ETH prices to rebound from their strong support area. At present, the price chain indicators of Ethereum show bullish, giving confidence to those holding long positions.
Ethereum flashes a signal of great surrender
According to Coinglas' ETH clearing chart, Ethereum is undergoing short and long liquidation due to fluctuating prices. Data shows that after approaching the $1630 mark, the ETH price experienced a short liquidation of $4 million and a long liquidation of $10 million. This means a fierce battle between bulls and bears to determine a clear direction for ETH prices.
Interestingly, data from Santiment reveals signals of Ethereum's surrender. Amidst yesterday's sharp drop in prices, investors panicked and sold off, with most traders exiting at a loss. It is worth noting that Ethereum, ShibaInu, and SushiSwap have all witnessed the highest levels of trader losses (relative to profits) achieved throughout the year. This implies a significant surrender of Ethereum and other counterfeit coins, becoming the main catalyst for the recent rebound in ETH prices.
However, Glassnode has revealed some worrying data as the recent drop in transfer volume (7-day moving average) to a 1-month low of 19658.435 may have a bearish impact on Ethereum prices. The decrease in the number of transfers may indicate a decrease in transactions and activity levels on the Ethereum network, which may be due to higher gasoline costs on the network.
In addition, the number of addresses receiving ETH from the exchange has reached a 6-month low of 2262.839, which may indicate a decrease in purchasing activity or a tendency to keep assets on the exchange, thereby causing selling pressure on Ethereum prices.
What is the next trend of ETH prices?
Although the Ethereum has significantly declined from the resistance level of $1650, it has now rebounded from the support level of $1610, indicating that bulls are vigorously defending this support level. As of the time of writing this article, ETH prices were trading at $1648, an increase of over 1.9% compared to yesterday.
The 20-day moving average is at $1641, and RSI has surged above the midpoint, indicating that buyers have an advantage. If prices continue to soar from their current levels, bulls may try to break through the resistance level of $1745 again. If this measure is successful, ETH prices may deviate from the bearish zone, with a target of $1880.
On the contrary, if the price suddenly reverses and falls below the trend line support level of $1610, it may indicate that the price may experience a severe sell-off and test the support level of $1530.
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