- The estimated lever ratio of Ethereum fell by 15% in two days, which liverage on the Ethereum market showed.
- 375,000 ETH has also been withdrawn from derivatives as speculative interest rates.
Ethereum [ETH] Has had one of the most volatile weeks in history. After he has fallen to a five -month low of $ 2,160 earlier this week, the largest Altcoin has since been found on the $ 2,760 press.
However, this rebound can be short -lived due to the shifting dynamics in the derivatives market.
The lever ratio of Ethereum decreases 15%
The liquidations on the ETH market earlier this week caused a significant decrease in open positions, reducing leverage.
In the last two days, the estimated lever ratio from Ethereum fell by 15%, from 0.64 to 0.54, which marked the lowest level in six weeks.
The falling ratio follows a remarkable fall from open interest to $ 22 billion, the lowest since the end of November, according to Coinglass.
Source: Cryptuquant
Looking at trends from the past, the ETH price drops when the lever ratio decreases.
If history repeats itself, Ethereum could probably dive further until derivatives traders begin to open new positions and show conviction in the trend.
375k ETH withdrawn from derivatives
The reduced speculative activity around Ethereum is further seen in the large -scale withdrawal of 375,000 ETH from derived exchanges in the past three days.
The consistent recordings indicate that traders risk. In addition, the recordings coincided with rising inflow to spot exchanges, which shows that traders close their lifting tree positions and sell ETH on the spot market.
Source: Cryptuquant
Beerarish can put pressure on ETH as a result of sales activities. At the same time, it shows a decrease in the liquidation risk, resulting in reduced market volatility.
Beerarish Crossover could feed the downward trend of ETH
Ethereum had formed a bearish crossover on his one-day graph after the 50-day simple advancing average (SMA) crossed under the 100-day SMA.
This crossover suggests that the downward trend is gaining force.
Despite this Bearish signal, the Chaikin Money Flow (CMF) remains on Bullish Territorium, indicating that the purchasing pressure remains strong.
Source: TradingView
Traders must look forward to a possible dip not to collect liquidity at $ 2,160. Ethereum could return to this level if sellers get control and buying demand.
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To overcome ETH the Bearish, the resistance must turn to the 200-day SMA ($ 2,973). The violation of this resistance level has always explained well on the price of ETH.
Another crucial resistance level is on the 50-day SMA ($ 3,304), with a breakout set to ignite a strong bullish sentiment.
