After several weeks of consolidation under important resistance levels, Ethereum's prices finally saw a significant decline.Although there are still many support positions available, ETH's situation does not look good
After several weeks of consolidation under important resistance levels, Ethereum's prices finally saw a significant decline.
Although there are still many support positions available, ETH's situation does not look good.
Daily chart:
On the daily chart, prices have significantly fallen below the $1750 level and the key 200 day moving average near the $1800 level. The above moving average is one of the most important trend indicators, and when the price falls below its trading level, the market is considered to be in a bearish stage.
Currently, the short-term support level of $1650 supports prices as a bullish pullback seems possible. However, with the recent decline, the market structure has shifted to bearish and the $1400 level may be retested in the coming weeks.
4-hour chart:
From the 4-hour time frame, it is obvious that the price has broken through a major downward channel a few days ago. This collapse intensified the decline, with a large shadow piercing the $1650 level.
However, so far, the above levels have successfully supported prices. The RSI indicator has also recovered from oversold areas, indicating that there may be consolidation in the short term. However, based on recent price trends, prices are still likely to decline.
Ethereum Open Position Contract
After several weeks of narrow consolidation, Ethereum prices have suddenly fallen in the past few days. These sudden price changes are usually caused by clearing in the futures market.
This chart displays the open position indicator, which measures the total number of open positions in the perpetual futures market. High value often leads to fluctuations.
As shown in the figure, the recent decline has been accompanied by a sharp decrease in open positions. Therefore, it can be understood that the futures market is once again responsible for the recent decline, as the significant reduction in open positions indicates that the market has experienced a long-term liquidation cascade.
Therefore, it is expected that the price trend will be more stable in the short term, and the leverage positions that are currently open will decrease.
For more hot topic information, please follow me.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
