In its latest analysis, Matrixport highlighted that the recent price movements of Ethereum were largely driven by positioning in the futures market, with no strong fundamental dynamics behind this rise.
Rise of Ethereum Prices and Its Causes
The report from Matrixport pointed out that Ethereum's sharp pullback was due to an overheated market structure from high leverage usage. The company emphasized that leverage levels remain high, which may create more selling pressure in the short term.
Analysis of the Bitcoin Situation
Matrixport also noted that Bitcoin has attempted to turn its direction upward with recent reaction purchases; however, considering seasonal trends, this recovery is unlikely to be sustainable. It is crucial for Bitcoin to defend the $98,000 level to maintain its current technical structure. A breakdown below this level could trigger a broader correction.
Matrixport's Recommendations for Investors
The analysis emphasizes that due to the intensity of leveraged long positions, sharp downward movements in the market could occur again in the short term. Matrixport warns that Ethereum's structure could cause it to lose value more quickly in the event of negative news or market shock. Therefore, investors are advised to be cautious, noting that markets are currently driven by the balance of leveraged derivative positions, not fundamentals.
Thus, the current price dynamics of cryptocurrencies, including Ethereum and Bitcoin, require careful monitoring and caution from investors given the high levels of leverage and potential corrective movements.
