EtherETHAfter its fourth rejection of the $2.400 level since 14 April, ) declined 3.4% to 2,287 dollars on Monday. The price is still trading below the average 100-day movement, and there are over $2 billion worth of liquidation threats concentrated in the area around the support level at $2,150.
Crypto analyst Michaël van de Poppe also flagged weakness in Ether relative to Bitcoin, raising doubts about the strength of any near-term uptrend.
Rejections of the $2400 limit on ETH’s upward potential
Ether failed to breach $2,400 on four occasions over the last two weeks. This formed a triple-top pattern in the daily chart. The strength of each retest was reduced near the $2,400 level. It is likely that sellers have been absorbing supply.
The exponential moving (EMA) 100-day average near $2350 is still acting as a dynamic support. Price has not held it above on the 1-day chart. Upward attempts have been short.
Chart of ETH/USDT for one day. Source: Cointelegraph/TradingView
Support at $2.150 has now gained more importance. This level, which was previously resistance, could serve as a new base. It is possible to reach deeper lows if the level falls below.
The liquidation data puts pressure on this area, as $2.5 billion of leveraged longs are below $2.150. Breaking below this level may trigger forced sell-offs in the $2,050 – $1,900 area.
Ether liquidation map. CoinGlass is a source for the ether liquidation map.
MN Capital founder Michaël van de Poppe noted The ETH/BTC pairs is showing signs of weakness. The ratio fell below 0.032 BTC and removed a crucial support level that was tied to previous continuation attempts.
The ETH/BTC rate also fell below the moving average of 21 periods, signaling a fading relative power against Bitcoin. Next, the level of higher-timeframe is near 0.026 BTC. This was previously where buyers had stepped in.
Binance chart analysis for ETH/BTC. Source: CryptoQuant
Related: BitMine acquires 101,000 ETH despite $6.5B in unrealized losses
ETH Futures Positions Hint at a Market Reset
Ether Open Interest (OI), Binance has dropped ETH’s price has fallen to the level of $2.58billion, which is similar to what it was at when ETH reached $2.200 early in this month. The drop in value indicates a resetting of leverage, following recent positions.
ETH: Binance cumulative net taker volume. Source: CryptoQuant
Funding rate is a more clear signal. It’s at -0.013% – the lowest level since February. New activity is dominated by short positions, with the long positions being reduced.
Amr Taha, Crypto Analyst noted The combination of these two factors places ETH on a more short-heavy setup, with less leverage. The imbalance between price and positioning could increase if the price stays at current levels. This would lead to an early breakout.
A key level is around $2150. Here, liquidation risks are converged with the technical conditions of the day.
Related: ETH price up 10% in April, so why is Ethereum Foundation selling?
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
