Speculation around the price movement of Ethereum (ETH), the second-largest cryptocurrency in terms of market capitalization, suggests that a potential decline could be looming following the emergence of a bearish pattern on the price charts.
Assessing Ethereum’s (ETH) Bearish Scenario
Notably, the bearish trend observed is not unique to ETH alone but appears to be a common theme among other major cryptocurrencies like Bitcoin (BTC), XRP, and Solana (SOL).
ETH has been on a downward trajectory since December 2024 and has notably broken below and retested its breakdown level, reinforcing the prevailing bearish sentiment in the market.
Predicting ETH’s Future Price Movement
Considering the recent price action and the momentum seen historically, there is a likelihood that ETH could experience a 10% decline, potentially reaching the $2,850 mark if the current sentiment persists. Nevertheless, certain technical indicators suggest the possibility of a price recovery.
Examining the daily timeframe, the Relative Strength Index (RSI) for ETH is hovering close to the oversold territory, hinting at a probable rebound. Additionally, the 200 Exponential Moving Average (EMA) indicates an upward trajectory for the asset.
Traders’ Bearish Positioning
Despite the positive signals from these indicators, traders seem cautious about taking long positions, according to insights from the on-chain analytics company CoinGlass. Presently, the long/short ratio for ETH stands at 0.94, underscoring a prevailing bearish sentiment among traders.
Analysis shows that 52.67% of prominent traders have opted for short positions, while 47.33% have taken long positions.
Moreover, traders have been increasingly active during this period of bearish sentiment, with ETH’s Open Interest witnessing a 4.5% rise in the last 24 hours. These metrics suggest that intraday traders are leaning towards a bearish outlook, possibly resulting in a forthcoming price decrease.
Recent Activity Among Ethereum Whales
Aside from traders, long-term holders and sizeable investors are reportedly accumulating ETH, as indicated by CoinGlass’s data on spot inflow/outflow.
Specifically, exchanges have recorded outflows totaling over $21 million in ETH over the past 24 hours, suggesting an accumulation phase that might generate buying pressure and a viable buying opportunity in the market.