Amid the ongoing conflict between Iran and Israel, Ethereum (ETH) is trending lower as it fails to maintain critical support levels and a significant price drop is expected. Additionally, ETH’s on-chain indicators such as Long/Short ratio and future open interest further support this bearish outlook.
Current price momentum
At press time, ETH is trading near $2,365 and has experienced a price decline of over 4.25% in the last 24 hours. During the same period, trading volume fell 11%, meaning there was less participation from traders and investors due to concerns about further price falls.
Ethereum technical analysis and future levels
According to expert technical analysis, ETH recently broke the important support level of $2,400 and turned to the downside. Current market sentiment and this collapse are likely to lead to a 7% decline to reach the $2,200 level in the next few days.
However, ETH is currently trading below the 200 exponential moving average (EMA) on the daily time frame, indicating a downtrend. The 200 EMA is an important technical indicator that determines whether an asset is trending upward or downward.
Bearish On-Chain Indicators
This bearish thesis receives additional support from on-chain indicators. According to on-chain analytics firm Coinglass, ETH’s long/short ratio is currently at 0.96, indicating bearish market sentiment among traders.
The long/short ratio is an on-chain indicator that shows how traders are positioning themselves in long or short bets. If long positions significantly exceed short positions, the ratio will be greater than 1 and vice versa.
Additionally, ETH’s future open interest decreased by 4.6% in the last 24 hours and is steadily decreasing. This indicates growing fear among traders following the recent collapse of an important support level.