Ethereum (ETH) Set to Hit $2,200 Level, Here’s Why
Ethereum (ETH) is the world’s second largest cryptocurrency by market capitalization, as it forms a bearish price action pattern over the daily time frame and is expected to decline. But, as chain analytics company Coinglass reports, investors and long-term holders appear to be taking advantage of this market prospect and are constantly accumulating tokens.
$321 million worth of ETH outflow
Data from spot inflows/outflows suggests that the exchange witnessed outflows of over $321 million worth of Ethereum during the ongoing price decline in Ethereum, indicating potential accumulation.
The outflow in this bearish outlook hints at an ideal buying opportunity and may lead to buying pressure and further upward rally.
Traders have strong bets on short positions
Meanwhile, day traders appear to be following current market sentiment. according to Small shop Data, traders strongly bet on short-term.
As of now, two major liquidation levels are close to $2,680, with traders holding long positions worth $73.5 million, while $2,780 is another major liquidation level with traders holding short positions worth $325 million.
The data shows how bears bet on current sentiment, which leads to a price drop.
Current price motivation
ether The current trading price is close to $2,690, witnessing a 1.30% price drop in the past 24 hours. However, during the same period, its trading volume fell by 25%, due to bearish market sentiment and ongoing market uncertainty, with lower participation rates for traders and investors compared to the previous day.
Ethereum (ETH) technical analysis and upcoming levels
With all these factors, expert technical analysis shows that Ethereum has turned bearish as it failed to surpass the critical support level of $2,800 and seems to be declining.
Based on recent price action and historical momentum, if ETH closes below $2,700 under the daily candle, it is likely to drop 20% to reach the next $2,200 level.
However, the relative strength index (RSI) of ETH is close to the oversell area, indicating the possibility of bearish trends and further price declines.
