A recent report from 10x Research reveals Ethereum's vulnerabilities and broader systemic issues in the cryptocurrency market, highlighting negative changes in liquidity and investor sentiment.
Current Situation with Ethereum
The report points out that Ethereum is under pressure due to overleveraged futures positions, questioning the previous positive sentiment created by ETF developments. Delphi assessed the risks related to Ethereum potentially dropping below the $2,420 level, which is now a real possibility.
Systemic Issues in the Market
According to the report, market liquidity is beginning to dry up, negatively impacting the potential for further price increases. There is also a decline in stablecoin flows, indicating that major buyers are pulling back from the market as summer approaches.
Future of the Cryptocurrency Market
The report signals a gradually negative sentiment among investors toward Ethereum and Bitcoin, with potential repercussions for the entire crypto ecosystem. Key support levels are being tested, which could lead to further downturns in the market.
In light of the volatility and potential for further declines in Ethereum and Bitcoin prices, investors should exercise caution and consider current trends in the cryptocurrency market.
