The fall in and up in CRYPTO MARKET is a normal routine but a valuable asset which such dips has create several questions in mind.
ETH price is down today after enduring a 9% decline in three days, and data suggests that the altcoin is poised for further downside.
Ether ETH $2,484.29 price suffered a significant correction over the past 24 hours, dropping roughly 3.5% over the last 24 hours to $2,492.
Ether’s bearish performance on Oct. 23 mirrored similar downside moves elsewhere in the crypto market, with the total capitalization falling by approximately 0.8% to $2.29 trillion.
ETH Price Lower Reasons Long Liquidations Pull Back:
Accompanying Ether’s bearish performance on Oct. 23 are massive liquidations across the crypto market. According to data from CoinGlass, over $24 million in ETH leverage positions have been liquidated following the latest, with $23.2 million representing long positions.
Total liquidations across the crypto market amounted to $122 million, with the tally continuing at the time of publication.
ETHER high liquidation event can forcefully close long positions, putting further pressure on price if spot bids do not absorb the sell-off.
Trending Lower Ethereum Continued Aainst Bitcoin
In such circumstance an Ether has trailed Bitcoin BTC $66,111 since Jan. 1, and it has continued to underperform the flagship cryptocurrency since the United States Federal Reserve cut interest rates by 50 basis points on Sept. 18.
Since this analysis, Bitcoin has surged approximately 11% compared to Ether’s 6% gain in their respective US dollar pairs.
In results ETHER has trended lower against Bitcoin in 2024, pointing to investors’ preference for BTC.
Hence the approval of spot Ethereum exchange-traded funds (ETFs) in the US saw the ETH/BTC rise from 0.04514 on May 16 to 0.05631 on June 1.
Since then, the ratio has been on a downward rollercoaster, dropping 31.5% to reach a 42-month low of $0.03856 on Oct. 23.
The last time the ETH/BTC ratio was seen at these levels was on April 19, 2021.
Resisting on upper side ETHER price faces stiffing in market
Ether’s price ran into resistance provided by supplier congestion around the $2,800 level after hitting the $2,768 level on Oct. 21.
“Ethereum faces short-squeeze risk” amid “rising leverage and key resistance” from the $2,700 level, said market intelligence firm CryptoQuant in an Oct. 23 post on X.
Using the Estimated Leverage Ratio to gauge the level of risk participants in the futures market are willing to take by using leverage, Crypto Quant analyst Shayan BTC found that the metric has been increasing over the last few months.
This suggests that more traders are opening high-leverage short positions, betting on further price declines for Ethereum.
“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.”
Keeping in view a scenario ETH dips, the analyst also said the 100-day simple moving average (SMA) currently at $2,675 “is a key resistance level.”
Source data from IntoTheBlock corroborates this with its in/out of the money around price (IOMAP) model revealing that the supplier congestion zone between $2,545 and $2,621 acts as a stiff resistance in Ether’s recovery path.
This is where approximately 2.0 million ETH were previously bought by approximately 3.2 million addresses.
Important Note that the 100-day SMA lies just above this area, reinforcing the importance of this resistance zone.
Conclusion:
This ETHER flow and analysis means that the path with the least resistance
for ETH price is to the downside. Crucial time for ETH lovers and itself.
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