Further decline in Ethereum price warns of a clampdown on the local support trend line. Will altcoins survive?
Ethereum price is currently trading at $2,418, down 2.85% in 24 hours. It has fallen by 8.56% in the past seven days, losing the standard of $300 billion in market capitalization. Ethereum is currently valued at $291 billion, with a 24-hour trading volume of $16.11 trillion.
Will Ethereum be able to sustain its position above $2,400 amidst increased market volatility and renewed selling pressure? Let’s examine the key support levels and potential price trends.
Ethereum price analysis
The daily chart shows a larger descending channel pattern, indicating a continued downtrend. Additionally, the bullish momentum within the bearish channel is struggling to gain traction due to heavy supply at the 50-day EMA.
Following the recent market correction, ETH price has fallen from a 14-day high of $2,729 to current levels, representing a decline of 11.52%. However, the bullish sentiment remains as long as the price remains above the key support level at $2,350.
The possibility of a breakdown rally is increasing on the 4-hour chart.
Bullish resistance in this time frame led to further rebound. Increasing selling pressure has pushed ETH price closer to the local support trendline near $2,350.
Additionally, the MACD indicator on the 4-hour chart is showing a bearish crossover. The 50, 100, and 200 EMAs also indicate a bearish crossover along the downtrend.
Therefore, technical indicators on the 4-hour chart indicate a selling opportunity. If a bearish breakdown occurs, the next important support levels for ETH would be $2,150, the psychological level of $2,000, and the $1,900 support level.
Analysts highlight significant on-chain support at $2,300
According to IntoTheBlock’s Global In and Out of Money Indicator, 77.54% of Ethereum’s current supply is “in the money”, amounting to approximately 105.62 million ETH tokens, or $255.43 billion in value. Masu.
Ethereum into the block
The “at-the-money” range is currently $2,412 to $2,511 and includes 6.66 million ETH (worth $15.97 billion), which is 4.85% of the current supply. Meanwhile, 23.99 million ETH tokens worth $58.02 billion are classified as “out of the money” and account for 17.61% of the total supply.
Analyst Ali Martinez points out the importance of this profitability metric, saying that with approximately 2.77 million addresses holding 52.65 million ETH tokens, the key support level for Ethereum is around $2,300. He emphasized that.
Ethereum options open interest exceeds $5 billion
As Ethereum price approaches the $2,400 mark, Ethereum open interest decreased by 1.02% and now stands at $11.44 billion. The options market reflected the volatility, highlighted by a 28.50% increase in options trading volume to $46.465 million.
Ethereum options open interest increased by 2.44% to $5.07 billion, according to CoinGlass data.
ETH derivative data
The long-to-short ratio for the past 24 hours was 0.96, indicating a moderately bearish sentiment. However, top traders on Binance have shown strong bullish expectations for Ethereum, with a long to short account ratio of 3.48 and a position ratio of 2.12.
In the past 24 hours, the market liquidated $51.23 million in Ethereum positions, with $43.17 million in long positions liquidated compared to $8.05 million in short positions.
Over five times as many long positions as short positions have been liquidated, and the overall sentiment on Ethereum’s price trend remains bearish. In this environment, Ethereum could test key support levels near $2,350, $2,300, or $2,150 if the broader market decline continues.
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