Ethereum tests critical support line amid massive sell-off! Will ETH price lose the $2,000 milestone?
The week began with a downward trend for the market due to a series of regulatory issues. Notably, the SEC rejected Coinbase’s proposal to enact new cryptocurrency regulations. This regulatory uncertainty has had a significant impact on Bitcoin, in particular, which has seen a massive decline, reaching lows near $40,500. Ethereum (ETH) also experienced a decline in buying momentum, retesting support within its ongoing upward pattern.
Whales liquidated ETH in large quantities.
In the past day, the market has seen a significant increase in liquidations as investors panic and sell off assets. Total liquidation in the market exceeded $243 million, of which long positions accounted for about $212 million, according to data from Coinglass. In particular, Ethereum faced massive liquidation worth about $33 million, with about $30 million coming from the liquidation of long positions.
After the price of ETH failed to rise above $2300, large holders quickly sent their holdings to exchanges for selling purposes. Specifically, Lookonchain revealed that Galaxy Digital deposited approximately 11,200 ETH ($24.3 million) to cryptocurrency exchange Binance this morning. Some analysts see this as the main reason for Ethereum’s recent decline.
CryptoQuant’s latest data indicates that ETH’s Netflow is surging from extremely negative territory as inflows have surged more than outflows over the past 24 hours. Although the indicator is currently in negative territory at -9069, this means smart investors are actively accumulating and strengthening support levels. This activity suggests a possible market rebound.
Interestingly, the market has started showing bullish signals in recent hours as the Ethereum price aims to recover support. According to data from Coinglass, the long/short ratio has increased significantly and currently stands at 1.2099. This indicates that approximately 55% of all positions are currently expecting the price to rise.
What’s next for ETH price?
Ether experienced rejection near $2,325, which resulted in the price testing upward support at $2,100. However, bulls are defending strongly, targeting recovery above EMA20. At the time of writing, ETH is trading at $2,154, down more than 2.6% from yesterday’s price.
A negative divergence from the midline of RSI indicates a slowing of bullish momentum. Sellers will likely try to consolidate their advantage by lowering the price of Ether below $2,100. If successful, ETH price could fall to $2,010 and possibly further to the strong support level of $1,870.
On the other hand, if Ethereum bounces back and surges above the $2,200 level, it means that lower levels are attracting bulls. These developments will increase the odds of Ethereum rising to the $2,464 level. But now, as the market prepares for a correction, ETH price could fall further and test the patience of buyers.