After the FOMC meeting, ETH did witness some bullish signs. However, due to the selling mode of ETH Whale, the bullish view is still questionable
After the FOMC meeting, ETH did witness some bullish signs. However, due to the selling mode of ETH Whale, the bullish view is still questionable.
- ETH trading volume and clearing highlighted sluggish activity.
- As whales continue to sell, ETH finds it difficult to gain a bullish outlook.
Ethereum's native cryptocurrency ETH has been in a stalemate for two weeks, and investors are anxiously waiting to see which direction the market will tilt.
Due to the Federal Reserve raising interest rates by 25 basis points, the possibility of breaking the deadlock has increased by one level.
There are some bullish developments here
In the context of similar interest rate hikes announced by the Federal Reserve earlier, we have observed some returns in the bullish outlook. Therefore, in the hours following the announcement of interest rate hikes, ETH and most other top cryptocurrencies experienced some bullish excitement. One of the main exciting signs is the surge in deposit contracts over the past 24 hours.
The biggest question now is whether ETH will maintain its bullish outlook and retest $2000. The answer depends on multiple factors, with the key being the level of demand that cryptocurrency can reach in the coming hours.
One of the best ways to assess the level of buying pressure is to examine the level of leverage liquidation that may trigger buying pressure. As the price gains, the estimated leverage ratio has achieved a downward fulcrum in the past two days. At the same time, short selling has surged since early May.
The above observations indicate that leverage fulcrums may be unfavorable for leveraged short positions. However, compared to the previous wave of liquidation on April 26th, the subsequent wave of liquidation has so far been smaller in scale or intensity. In other words, the subsequent bullish trend has weakened, mainly due to low trading volume.
So far, the market has shown a lack of confidence to support a sufficiently large rebound to recover the price level of $2000. Not long ago, we investigated the fact that traders are turning to short-term attention, and this seems to have been the case in the past few days.
ETH: The Story of Low Volatility and Directionality Weaknesses
At the time of writing this article, people still believe that ETH will find it difficult to gain more room for growth, as shown by its recent price trend, although people hope for a significant rebound in the middle of the week. As of the time of publication, it changed hands for $1875.
ETH's MFI confirms that some fund inflows are consistent with the slight upward trend seen during the week. However, observations of whale activity indicate that despite recent easing measures taken by the Federal Reserve, whales continue to sell.
ETH traders should closely monitor whale activity. This is because without the support of whales, bulls may not have the strength to break through the $2000 range.
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