- Ethereum’s price has fallen by 8.99% over the last 24 hours, with the same hitting a yearly low
- Altcoin’s fundamentals hinted at a potential dip below $2,000
Ethereum bears overwhelm whales
Over the last 24 hours, Ethereum’s [ETH] price fell to hit a yearly low of $2,073 on the charts. Now, while ETH did recover in the hours soon after, it’s worth pointing out that this recovery effort did little to dissuade the altcoin’s prevailing downtrend.
In fact, at the time of writing, ETH was trading at $2,143. This marked a 8.99% decline on the daily charts. The altcoin lost value on its weekly and monthly charts too, falling by 23.18% and 31.34%, respectively.
Source: X
Such a sharp decline is a sign that ETH has been facing strong selling pressure lately as sellers dominate the market.
However, this dip has also created a buying opportunity, with whales turning to buy the dip. Consider this – Ethereum whales bought 110,000 ETH tokens over the last 72 hours alone.
Despite this buying spree from whales, however, bears have overwhelmed the market and seem to have total control. Thus, this whale activity has failed to positively impact the altcoin’s price movement as sellers are even more active.
Source: Cryptoquant
We can see this strong selling pressure as Ethereum’s exchange netflows have remained positive over the last 6 days.
When netflows remain positive for a sustained period of time, it means that there’s an exchange inflow rather than an outflow. Such a trend implies that there’s more selling than buying in the market – A sign of sustained bearish sentiments.
Source: Cryptoquant
This can be further validated by the fact that Taker’s buy-sell ratio has remained below 1 over the last four days.
Therefore, we can confirm that more sell orders and fewer buy orders were executed in the market. This dominance positions Ethereum in a risky position, one that could see the altcoin make more losses.
Is ETH set for further decline?
According to AMBCrypto’s analysis, Ethereum is now under significant downward pressure amidst bearish sentiment.
For example – Ethereum registered a bearish crossover over the last 24 hours on its MACD. A bearish crossover here means that the downward momentum has been strengthening. with bullishness significantly weak in the market.
Also, another worrying observation is that a death cross may be emerging too. If this crossover transpires, we could see a 20% + move to the downside, as was seen during the previous cycle.
Source: Tradingview
During the previous cycle, ETH’s price dropped to a low of $2.1k from a high of $2.8k after a death cross emerged.
Therefore, if history is anything to go by, if this happens again, at this level, we could see a drop to $1,714. However, if buyers can start to re-enter the market and slow down the downtrend, a reversal will see Ethereum reclaim $2,340.
As it stands though, the downtrend is strong and a dip below $2k seems inevitable.
