Ethereum, the world's second-largest cryptocurrency, has shown a bearish pattern on its daily chart, indicating a possible significant price decline. Nevertheless, investors are continuously accumulating tokens despite the current market conditions.
$321 Million Worth of ETH Outflow
Data from spot inflow/outflow reveals that during Ethereum's current price decline, exchanges have observed an outflow of more than $321 million worth of Ether tokens, suggesting possible accumulation by investors. Such outflows in a bearish outlook hint at an ideal buying opportunity.
Traders' Strong Bets on Short Positions
Meanwhile, intraday traders seem to be following the current market sentiment. According to Coinglass data, traders are strongly betting on the short side. Currently, the major liquidation levels are near $2,680, where traders hold $73.50 million worth of long positions, while $2,780 is another major liquidation level where $325 million worth of short positions exist.
Current Price Momentum of Ethereum
Ether is currently trading near the $2,690 level and has experienced a 1.30% price drop in the past 24 hours. However, during the same period, its trading volume has dropped by 25%, indicating lower participation from traders and investors compared to the previous day.
Experts' technical analysis suggests that Ethereum has turned bearish as it failed to hold above the crucial support level of $2,800. If it closes a daily candle below the $2,700 level, a 20% decline to the $2,200 level is expected. However, Ethereum’s RSI nears the oversold area, indicating a potential further price drop.
