Ethereum (ETH), the second-largest cryptocurrency, is showing signs of potential price decline. This is due to a bearish pattern seen on the charts.
Ethereum’s Bearish Outlook
This bearish trend is not unique to ETH, but also evident in other major cryptocurrencies like Bitcoin (BTC), XRP, and Solana (SOL). Since December 2024, ETH has been on a downward trend, reinforcing the bearish sentiment.
ETH Price Prediction
If this sentiment persists, ETH could drop by 10% to reach the $2,850-level. However, technical indicators also suggest a possible price rebound. For example, ETH’s Relative Strength Index (RSI) was near the oversold area, hinting at a potential recovery. The 200 Exponential Moving Average (EMA) indicated an uptrend.
Whale and Trader Activity
Despite these bullish indicators, traders seem reluctant to take long positions. According to on-chain analytics firm CoinGlass, ETH’s long/short ratio was 0.94, suggesting strong bearish sentiment among traders. A reported 52.67% of top traders held short positions, while 47.33% held long positions. Interestingly, traders’ positions have increased significantly during this bearish period, particularly as ETH’s Open Interest rose by 4.5% in the last 24 hours. This suggests that intraday traders are bearish, potentially leading to a price drop in the near future. In addition to traders, long-term holders and whales seem to be accumulating ETH. CoinGlass’s spot inflow/outflow metric revealed that exchanges have seen outflows of over $21 million worth of ETH in the last 24 hours. This could indicate potential accumulation, creating buying pressure and a buying opportunity.
Ethereum finds itself in a complex situation: on one hand, technical indicators show potential recovery, on the other, traders and analysts still lean towards bearish sentiments. Nevertheless, large holders continue to accumulate the cryptocurrency, potentially shifting the market dynamics.
