Ethereum (ETH) Flashing Sell-off Signal, $2,850 Next Target?
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is sending out selling signals, suggesting a significant price drop in the coming days. Over the past three days, sentiment across the cryptocurrency space has turned decidedly bearish, causing prices to drop significantly.
Ethereum (ETH) Technical Analysis and Upcoming Levels
However, this price decline is expected to continue as ETH formed a bearish price movement on the daily time frame. According to expert technical analysis, ETH has broken out of a bearish head and shoulders pattern and crossed the key support level at $3,250.
The breakdown in bearish price action prompted traders to turn to short positions, which could impact the price of ETH in the coming days. Historical data shows that $3,250 has been a strong support level for ETH over the past three months, consistently providing support whenever market sentiment turns bearish.
This time, however, the altcoin failed to maintain these levels. Based on recent price action, if ETH closes below the $3,200 level, a drop of 11% to the $2,850 support is very likely.
Bearish on-chain indicators
This bearish outlook prompts traders According to a report from on-chain analytics firm, holding a short position coin glass. Currently, the ETH long-short ratio is 0.884, and traders are strongly bearish. In addition, data shows that as of press time, 53.07% of top traders hold short positions and 46.93% hold long positions.
main liquidation level
Furthermore, the main liquidation areas are located at the lower limit of $3,185.5 and the upper limit of $3,361.9, and as the ETH exchange liquidation chart shows, traders are severely over-leveraged at these levels.
If current sentiment holds and the price falls to the $3,185.5 level, long positions worth nearly $261.01 million will be liquidated. Conversely, if sentiment changes and the price rises to the $3,361.9 level, short positions worth approximately $708.16 million will be liquidated.
The data showed that sellers created more than twice as many short positions as buyers held, indicating strong bearish sentiment.
Current Price Momentum
Currently, ETH is trading close to $3,225, with the price down by more than 1.65% in the past 24 hours. However, its trading volume fell by 29% during the same period, indicating reduced participation from traders and investors.
