In recent hours, the market has seen significant liquidations. Bitcoin’s price reached the $38,000 resistance mark, prompting sellers to open short positions. As a result, Bitcoin’s price fell almost $1,000, while Ethereum’s price lost momentum above $2,000 and is now hovering around a critical support level. Despite this, Ethereum is showing signs of a comeback. Statistics on the chain indicate increasing accumulation, which acts as a buffer against any decline.
ETHBTC hits 1-week low
The latest data from Coinglass indicates significant market movements. Over the past 24 hours, a liquidation has occurred as Ethereum (ETH) struggled to keep its value above $2,000. This downturn led to the liquidation of long positions worth approximately $37.5 million, strengthening the resistance level as the price did not meet buyers’ expectations.
Further insights from TradingView show that the ETH/BTC pair has hit its lowest point of the week, trading at 0.053. This trend indicates an increase in sales activity in the market. Moreover, there seems to be a decline in interest from large investors, or whales, as Ethereum’s price could not cross the $2,100 threshold. Data from IntoTheBlock shows a decline in whale transactions, from a high of $6.6 billion to around $4 billion.
The potential for a drop in Ethereum’s price may not be significant this time around, as BlackRock’s initiative for a spot ETH ETF appears to be having a positive impact, potentially keeping the altcoin’s price in a favorable buying zone.
The NVT ratio (Network Value to Transactions) has remained fairly stable at around 48.3. This stability indicates that even though the network value has fallen due to a price drop, the volume of Ethereum transactions has remained high enough to keep the NVT ratio in balance. Therefore, it supports the price of ETH to remain above $1,850.
What’s next for the ETH price?
The value of Ether fluctuated significantly, with the price attempting to fall below $1,900. However, the bulls continue to apply pressure, keeping the price above the EMA200. At the time of writing, ETH price is trading at $1,936, down over 4.55 from yesterday’s price.
However, the bulls’ inability to convert the $2,000 threshold into a stable support point is a worrying indicator. However, the positive step is that the buyers were able to keep the price above the 20-day exponential moving average (EMA) on the daily chart. Should buyers manage to keep ETH’s value above $2,000, it could be a sign of strong buying activity at lower prices. In such a scenario, the price could aim to reach the higher zone ranging from USD 2,140 to USD 2,200.
On the bearish side, if the price of ETH falls and falls below the 200-day EMA on the 4-h chart, it would indicate a comeback of bearish momentum. Such a downturn could potentially lead to a further decline towards $1,750.
