23 April, 2024



ETH Plummets After Reaching $1,681; Could Bulls Reign the Market?

08 Nov, 2022

22 Nov, 2023

The cryptocurrency market has seen some turbulence over the past day, with many top coins seeing significant price swings. One of the biggest losers in the past 24 hours has been Ethereum, which is down by around 5%.

The price of ETH is currently trading at $1,479, which is a significant drop from its daily high of $1,590. Ethereum has been one of the best-performing cryptocurrencies over the past few weeks, but it seems like the recent run may have come to an end.

It’s important to note that the cryptocurrency market is still highly volatile and prone to sudden changes in direction. So, while Ethereum’s price may have dipped in the past day, it could just as easily rebound in the coming days. Investors should remain cautious and monitor the market closely for any further developments.

This sell-off comes after a period of accumulation for Ethereum, with rates rising steadily since late October. All tiers of traders have been buying ETH during this time, with small, medium, and large traders all increasing their percentage of supply held.

This shows that there was strong underlying demand for Ethereum even as prices were rising, and this buying has continued even as prices have pulled back in the past day.

It’s unclear what has caused this sudden sell-off, but it doesn’t seem to be linked to any particular news or event. It could simply be that traders are taking profits after the recent price run-up, or that there’s been a shift in sentiment among investors.

The only group that has not been buying more Ethereum is exchanges and addresses holding over 10 million ETH (likely to be founders or early investors).

What does technical indicators suggest about ETH?

The 4-hour chart is close to crossing bearish, which could suggest that the sell-off could continue in the short term. However, the RSI (Relative Strength Index) is still in bullish territory, which suggests that there’s still some underlying buying pressure.

Source: Tradingview

The 4-hour chart also shows that the sell-off has taken Ethereum’s price below the ascending triangle pattern that it had been trading in since late October. This breakdown could be an indication that the bulls are losing control and that prices could continue to fall.

However, it’s worth noting that the breakout from this triangle pattern was initially to the upside, and prices only fell back below the pattern after a period of consolidation. So, there’s still a possibility that Ethereum could resume its uptrend if buyers step in at these lower levels.

Conclusion

The recent sell-off in Ethereum has taken prices below the ascending triangle pattern that it had been trading in, which could be an indication that further downside is ahead. However, the RSI is still in bullish territory, which suggests that there’s some underlying buying pressure. So, it’s still possible that prices could resume their uptrend if buyers step in at these lower levels.

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