Ethereum (ETH) has been in a downtrend since falling below $3,000 six weeks ago, signaling a potential continuation of the correction.
Reports hinting at a possible rejection of applications for a spot U.S. Ethereum ETF added to market pessimism.
Analysts predict even lower prices for Etherium if these ETF applications are rejected, in line with technical analysis. However, the duration of this decline remains uncertain.
Fibonacci retracement levels were calculated based on ETH’s decline from $4,093 to $3,056.
Although this did not significantly change the overall market structure on higher timeframes, ETH fell below $3,000 in mid-April, tipping the scales towards a bearish structure.
Furthermore, OBV (On-Balance Volume) fell below a key level. Currently, the $3,000 resistance zone is formidable, with momentum favoring the bears, as evidenced by the RSI results of 40.5.
Forecasts suggest a potential drop below $2,800, with a focus on the 50% and 61;.8% extension levels. However, it remains uncertain whether Etherium experiences a V-shaped reversal or consolidates at these levels.
Shortly thereafter, the price bounced from $2,870 to $2,990, wiping out short sellers.
Cumulative liquidation levels currently remain negative but less extreme, suggesting further downside potential. The $2,840 area is emerging as a near-term target for the Ethereum price.
Analysis of the liquidity charts showed the end of the short-term rebound. Just over 24 hours ago, cumulative liquidation levels were significantly negative, indicating more liquidations of shorts than long positions.
Shortly thereafter, the price bounced from $2,870 to $2,990, wiping out late short sellers.
Cumulative liquidation levels currently remain negative but less extreme, suggesting further downside potential. The $2,840 area is emerging as a near-term target for the Ethereum price.
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