Ethereum currently hovers around the $3.5K mark.
The market witnessed $77.19 million in ETH liquidations. The potent bearish trap set within the crypto market has pushed the assets into the red zone. The prices have lost momentum and slipped back to recent lows. With the Fear and Greed Index value holding at 52, the neutral sentiment is lingering across the market. However, the largest altcoin, Ethereum (ETH), followed suit and began trading on the downside.
The altcoin’s attempt to ascend above the $3.7K range has failed and sunk to the previous lows. As per CMCdata, ETH opened the day trading at around a high of $3,660. With the bears taking over control, the price has fallen to a low range of $3,547. Further downside correction of the asset may strengthen the bears.
The altcoin has marked a modest drop of over 1.01% in the past 24 hours, and Ethereum traded at around $3,593, with its daily trading volume decreased by 9.25%, reaching $29.89 billion. Meanwhile, the Coinglass has reported that the market has experienced a liquidation of $77.19 million worth of ETH during this period.
An on-chain data shows that the wallet 0xc156 has deposited 13,459 ETH worth around $49M to Binance. Also, 0x46DB sent 5,504 ETH valued at $19.8M to OKX, signalling potential selling pressure in the market.
Breakdown or Bounce Ahead for Ethereum?
Zooming in on the four-hour trading pattern of the ETH/USDT pair reveals that if the altcoin continues to get trapped in the bear hold, the price could retrace and test the support at $3,616. An extended downside correction might send the Ethereum price on a steep slide below the $3,610 range.
Assuming the uptrend of Ethereum, the price might climb to the immediate resistance levels at $3,628 and $3,634. The altcoin’s steady growth trajectory could break past these ranges, and the bulls trigger the ETH price correction on the upside, sending it likely toward its former highs.
In addition, the Moving Average Convergence Divergence (MACD) line is found above the zero line, but the signal line is below it, which indicates an early bullish momentum. This crossover may be a potential shift from bearish to bullish sentiment. Besides, the Chaikin Money Flow (CMF) indicator at -0.04 suggests a slight selling pressure in the market, with the distribution outweighing the accumulation. Further drop in value confirms the bearish momentum.
ETH’s daily Relative Strength Index (RSI) of 51.01 implies that it is in the neutral zone, neither overbought nor oversold. There is a lack of trend direction, but there can be a potential consolidation or a new start ahead. Moreover, the Bull Bear Power (BBP) reading of 0.98 signals mild bullish control in the market. As the value is not very strong, this could shift quickly. Also, the bulls can push the price above.