Ethereum's rally toward $2,000 stalls – Is another bearish leg beginning? - AMBCrypto
The price of Ethereum [ETH] was down1. 77%in the past 24 hours. Daily trading volume dipped by just over6%, and Open Interest has slid by3. 2%. CoinGlass data showed that long liquidations might help explain. . .
The price of Ethereum [ETH] was down1. 77%in the past 24 hours. Daily trading volume dipped by just over6%, and Open Interest has slid by3. 2%. CoinGlass data showed that long liquidations might help explain the recent price drop. The bullish derivatives traders faced around$67 millionin liquidations, measured from July 22. These liquidations forced sell orders to close the position in perpetual markets, increasing the sell pressure on ETH. CryptoQuant data showed that the funding rate was positive butdeclining. Since the first week of July, the 7-day moving average of the funding rate has dipped from+0. 0088% to +0. 0054%, a mildly positive reading. Source: CryptoQuantThe taker buy/sell ratio measures the proportion of aggressive [market] buying versus selling volume. This metric fell deep into negative territory recently. However, its 7-day moving average has not slipped below zero, as it did in May. The Ethereum price action is likely to turn bearish nowAMBCrypto reported onwhale accumulationand improved ETF demand recently. The network’s validator queue has also dropped to zero with no waiting time, signalingconvictionfrom long-term stakers. Source: ETH/USDT on TradingViewThe price charts told a different story. On the1-day timeframe, the swing structure remains firmly bearish. A breakdown below the February low at$1,742in early June confirmed this. At the time of writing,Ethereumwas experiencing a price bounce, but has not managed to reach key Fibonacci retracement levels. Traders’ call to action- SellSource: ETH/USDT on TradingViewAnother set of Fibonacci retracement levels was plotted based on the late May-early June selloff. Back then, the Ethereum price raced lower from$2,043 to $1,510. Earlier this week, the78. 6%retracement level had been tested. ETH bulls have faced a setback from the resistance level at$1,929. The4-hour and 1-day timeframeswere in agreement on a bearish bias. As things stand, a price drop toward$1,510appeared likely. A rally beyond$2,043would invalidate this bearish case. Final SummaryThe Ethereum whale accumulation and cleared validator queues signaled long-term conviction, but the price charts remained bearish. The derivatives market saw aggressive sell pressure in the past 48 hours, and the funding rate has been sliding lower, showing a cool-off in demand.