Overwhelming Dominance of Ethereum Bears
In the past 24 hours, the price of Ethereum (ETH) experienced a yearly low of $2,073 before seeing a minor recovery. Despite this temporary bounce, the overall trend remains bearish for the altcoin.
Currently trading at $2,143, ETH has witnessed a significant 8.99% decline over the course of the day. The weekly and monthly charts also depict losses of 23.18% and 31.34%, respectively.
The sudden drop indicates a mounting selling pressure as market dominance shifts towards sellers.
Although major investors have taken advantage of the dip, purchasing 110,000 ETH tokens in the last 72 hours, the market remains firmly under the control of bearish forces. The increased activity from whales has not been sufficient to counter the prevailing selling pressure.
There is clear evidence of selling dominance in Ethereum’s exchange netflows, which have remained positive for six consecutive days.
A positive netflow implies more tokens are being sent to exchanges rather than being withdrawn, indicating heightened selling activity. Furthermore, the Taker’s buy-sell ratio has consistently favored selling over buying in the past four days, underscoring the bearish sentiment.
Consequently, Ethereum could face further declines if the current market conditions persist.
Anticipating a Continued Downtrend for ETH
Analysis from CryptoCrypto suggests that Ethereum is currently under considerable downward pressure due to bearish sentiment.
Recent observations include a bearish crossover on Ethereum’s MACD chart within the last 24 hours, signaling a strengthening downward momentum and diminishing bullish sentiment.
Furthermore, there are indications of a potential death cross formation, which historically has led to significant price drops of over 20%.
In a previous cycle, Ethereum experienced a drop from $2.8k to $2.1k following a death cross event.
If history repeats itself, Ethereum might plummet to $1,714 but could reverse its course if buying interest picks up, pushing the price back to $2,340.
Despite the possibility of a reversal, the prevailing downtrend appears strong, making a drop below $2,000 increasingly likely.