Ethereum’s momentum seems to be cooling after a massive gain-taking by holders.
EthereumETHAs of the time of publication, is currently trading at $2.438. This represents a 3.5% drop in the last 24 hours, following a 34% rise over the previous week. According to Coinglass, open interest decreased by 2%. dataThe decrease in leveraged wagers is a sign of a reduced number. This decline follows a rally in which ETH soar From $1,800 up to $2,500 within a few days.
According to a May 13 analysis on X by Glassnode, the rapid climb was supported by a lack of resistance between the $1,800 and $2,500 range. However, the rally stalled around $2,580. It was a key level at which 1.3 million ETH previously had been accumulated. The held supply decreased to around 1 million ETH when the price was getting closer to this zone. It is likely that holders were selling close to break-even. It is this that has led to recent declines.
Ethereum’s recent rally appears to have been driven by spot demand and not leverage. A separate report from May 12 analysisShayanMarkets a CryptoQuant contributor noted that Ethereum’s funding rate, which reflects sentiment in the Futures Market, has remained flat. The majority of buying pressure was attributed to the spot markets, and not by traders borrowing funds.
This is a positive sign, as it reduces the likelihood of sudden crashes caused by liquidation. For the moment, however, it is a good sign. uptrend To continue, the funding rate may have to be raised slightly in order to show that traders of futures are also becoming more confident.
Ethereum shows short-term signs of exhaustion. Daily relative strength is 75 which puts it in overbought territory. It could be a sign of upcoming pauses or pullbacks.
But key moving-averages remain in favor of the bulls. Ethereum has remained above the SMAs and EMAs of all shorter and midterm periods, such as 10, 20, 30, 50, 100, and 200-day moving averages. The moving average divergence, at 187.5 points out a positive sign of continued momentum.
Currently, resistance lies around $2474. If this level is broken, it could lead to more gains. A correction towards the $2,200 level could occur, on the other hand, if the price is unable to remain above $2,000.
The traders are watching Ethereum closely to see whether it can rise above the $2,580 mark or if this recent rally will cool down into a more severe correction.
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Source: crypto.news
