Ethereum Price Analysis: Large Transaction Volume Declines By Billions, What’s Next For ETH Price?
Ether price has been on a rollercoaster ride in the past few days, experiencing a severe drop and struggling to maintain a trading position around $3,300. The cryptocurrency has seen fluctuations as buyers step in near the $3,000 mark only to exit the market at peak prices, leading to a decline in whale interest and volatility.
Recent data from CoinGlass shows that large transaction volumes have declined by billions, with positions worth $110 million being liquidated in the past 12 hours. Ethereum and Bitcoin positions dominate the liquidations, while other tokens like HBAR and PEPE also saw significant liquidations. This comes after a period of robust recovery in the market following Bitcoin’s halving event, but with short-term holders selling off, Ethereum’s price is now facing a selloff at resistance levels.
Despite the recent price drop, data from IntoTheBlock indicates that the volume of large transactions involving Ethereum has decreased, leading to reduced volatility. The NVT ratio has also fallen, suggesting that Ethereum may be undervalued and could potentially see a strong rebound in the coming days.
Looking ahead, Ethereum’s price is currently testing buyers’ patience at $3,100, with the 20-day EMA leveling off and the RSI declining below the midpoint, indicating bearish dominance. If Ether falls below the 20-day EMA, it could drop to $3,056, a crucial level for bulls to hold. On the other hand, a rebound above the 20-day EMA could empower buyers and push the price towards the 50-day SMA at $3,586 and potentially $3,700.
The long/short ratio for ETH price is surging, nearing 1.32, suggesting rising bullish dominance in the market. Traders and investors will be closely watching to see if Ethereum can break above key resistance levels and potentially consolidate around $4,000 in the near future.
