Nearly a month on the Green, Ethereum prices came along with the second largest cryptocurrency in the market, which has reversed sharply from its recent highs.
summary
- Ethereum prices have fallen 5% in the last 24 hours, extending a 10.6% decline, above $4,759, from this month’s peak.
- Over $870 million leveraged crypto positions have been settled in the past day, with ETH alone accounting for $220.6 million.
- Earnings are accelerating between both institutional and retail investors, increasing sales pressure.
Ethereum (ETH) prices have slipped around 5% over the past 24 hours, trading just under $4,255 at the time of writing per Crypto.News market data. The day’s decline extended the recession that began over the weekend, showing a 10.6% decline, above $4,759, from this month’s peak.
The decline in Ethereum prices strongly reversed the rally over the past week’s several days, surpassing this month’s increase of 60%. But what drives the pullback?
Ethereum Price Crash Description: Profit and Longs will be Rekt
The decline of Ethereum lies in the wave of liquidation. Over the weekend, long, multi-billion dollar positions were wiped out as Ethereum cut key support levels and caused a wave of forced sales.
Over the past 24 hours alone, more than $870 million in crypto positions have been settled, with ETH alone accounting for around $220.6 million, according to Coinglass data. This almost doubles the liquidation seen in Bitcoin (BTC) and highlights how heavily leveraged traders are with the benefits of Ethereum. The cascade of rewinds has quickly lowered the pushed price and amplified the losses.
Another important driver for price dip is the cooldown of funds traded on Ethereum Exchange. After logging the strongest week since launch, nine US registered funds have closed their latest sessions on Red.
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According to data from SOSOVALUE, five publishers recorded heavy leaks, with the largest single outral reaching $272 million, pointing to investor profit gains accumulated earlier this month. Data on the chain shows a similar trend among retail investors. Retail investors are increasing sales pressure by making profits.
However, ETH losses do not occur alone, reflecting the broader weaknesses of the crypto market. BTC has dropped by about 2.3% on the day, while other major altcoins like Solana (SOL) and XRP (XRP) have dropped by about 5%. The wider pullback comes amidst the speech of Fed Chairman Jerome Powell this week and changing macro expectations ahead of rising uncertainty around rate reductions, putting pressure on full risk assets.
Why is Ethereum down?
The long-term outlook for ETH remains strong, but the short-term signals are mixed. From a technical standpoint, ETH holds it at $4,134 just above the 20-day EMA. If you can’t hold this level, you could face an additional downside with the next major support sitting around $3,651 for a 50-day EMA.
ETH Price Chart | Source: TradingView
Further failures beyond the next support could mark deeper fixes and potentially erase many of the recent rally’s profits.
At the same time, the momentum indicators show caution. The Relative Strength Index (RSI) was cooled to 58 from excess territory above 70 earlier this month. This suggests that buyers are losing steam and the market is shifting towards a more neutral setup.
To regain bullish traction, ETH must regain $4,500 to show updated strength, with pushes from $4,750 to $4,800 being an important hurdle before attempting a new high.
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