Ethereum

bullish

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum (ETH) experienced its most significant weekly price drop since the FTX collapse in June 2022.</li> 
 <li>Despite the decline, indicators such as exchange flows and RSI suggest a potential recovery.</li> 
</ul> 
Ethereum (ETH) has had a tumultuous week, with prices showing significant volatility. 
 The typically bullish cryptocurrency saw a major price drop, erasing some of the optimism that had been building since the end of July. 
<h2 id="eth-s-performance">ETH’s Performance</h2> 
The last week of July saw a minor pullback in Ethereum’s price, followed by a recovery attempt that was quickly suppressed by a strong sell-off. 
 The cryptocurrency saw a consecutive decline over the past week, with an overall drop of 36.59%. 
This downturn is reminiscent of the rapid decline Ethereum experienced during the FTX collapse in June 2022. 
 Despite the recent sell-off, there are several indicators suggesting that Ethereum could be on the verge of a recovery. 
<h2 id="potential-recovery-indicators">Potential Recovery Indicators</h2> 
The Relative Strength Index (RSI) indicates that Ethereum is currently oversold, suggesting a potential price rebound. 
 Furthermore, the recent price drop has tested a major ascending support level, which has led to some accumulation. 
Data on Ethereum exchange flows also provides some optimistic insights. 
 Over the past 24 hours, more than 501,000 ETH was moved out of exchanges, the highest single-day outflow in the past 30 days. 
In contrast, the inflow of Ethereum to exchanges during the same period was significantly less, with a total of 446,877 ETH. 
 This resulted in Ethereum outflows exceeding inflows by approximately $119 million in dollar value. 
These exchange flow patterns may indicate a recovery in demand at lower price levels, suggesting that Ethereum could bounce back if sell pressure subsides. 
In the derivatives market, long liquidations have also peaked in the past 24 hours, with a total value of $141.2 million. 
 This is the highest single-day liquidation value recorded in the past 30 days. 
Short liquidations, on the other hand, amounted to just $35.5 million. 
 The surge in margin calls for leveraged long positions may have contributed to the additional price decline observed. 
The increased volatility and leveraged positions may lead to reduced volatility as the market deleverages from recent margin calls. 
 However, whether strong demand or continued sell pressure will prevail depends on external market factors.

Ethereum Plummets by 36%: Is a Bullish Recovery Possible after Unprecedented Sell-off?

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CoinEagle.com

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