Ethereum

Future

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum [ETH] experienced a significant drop to January lows, with a 27.5% decrease within 12 hours.</li>
 <li>Despite a brief bounce back, the future market saw a large number of ETH traders wiped out.</li>
</ul>
Ethereum [ETH] experienced a dramatic drop to its January lows on 5th July.
The cryptocurrency’s value dropped below $2.9k, followed by a further 27.5% decrease over the next 12 hours.
<h2 id="ethereum-s-brief-bounce-back">Ethereum’s Brief Bounce Back</h2>
At the time of reporting, ETH had bounced back to $2366 from its lows of $2.1k, marking a 12.17% increase.
However, the smart money that bought in at $2.9k and $3.1k did not see the returns they anticipated, breaking their previously flawless track record.
The price crash over the past few days was severe, with Ethereum markets witnessing $346.5 million worth of liquidations in just 24 hours.
The daily RSI fell to 19, its lowest since 18th August 2023.
<h2 id="market-crashes-and-liquidations">Market Crashes and Liquidations</h2>
The rally earlier this year has been entirely retraced, with the $2.5k-$2.6k zone likely to serve as resistance on the way up.
The On-Balance Volume (OBV) hit a new low, indicating extreme selling volume.
The day’s trading volume is 1.55 million ETH and counting, the highest in 2024.
While some may see this as a buying opportunity, more cautious traders and investors may want to wait until prices reclaim key support zones and remain above them for a few days before they feel confident enough to bid.
Market crashes like the one Ethereum experienced are not the best times for leveraged trades, as over 270k+ crypto traders discovered over the weekend.
Open Interest fell from $9.9 billion on the 3rd of August to $7.35 billion at press time.
The spot CVD also fell, supporting the idea of intense selling.
The liquidations of the past couple of days were mostly long, as expected.
A bounce toward $2.5k was possible, but the New York trading session could see added selling pressure.

Ethereum’s Bullish Future Hinges on Surpassing $2.5K Mark

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CoinEagle.com

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