Ethereum’s price fell below the $2.900 level due to increasing whale-sale pressure. But upcoming Fusaka upgrades could help boost sentiment.
The following is a summary of the information that you will find on this page.
- Ethereum has fallen below $2,900 and is now trading at $2,803.
- The data on derivatives show a large volume of open interest and a rapid decline, which indicates that positions are being exited quickly.
- The data on the chain and flow of whales indicate that despite expectations around Fusaka’s upgrade, there will be continued pressure to sell.
At the time of publication, the second largest cryptocurrency traded at $2803, down 0.9% over the last day and 5% for the entire week. ETH is about 43% lower than its previous all-time record high of $4.946.
Even as prices fall, market activity increases. Trading volume has grown by 46%, to $30 billion over the last 24 hours. This shows that traders are more active. CoinGlass data Also shows EthereumETHThe volume of derivatives has increased by 19%, to $71 billion. Meanwhile, open interest is down 4%.
If volume increases but open interest falls, traders may be unwinding their positions rather than opening new longs or shorters.
CryptoQuant data shows a clean breakdown
Readings on the chain support the technical movement. A Dec. analysis CryptoOnchain contributed by CryptoQuant shows that Ethereum has broken the volume node of $2,900, which was a solid floor for many months.
Ethereum’s Renko Chart is now leaning clearly to the downside, indicating a possible support level around $2250. This shift in the market structure has increased the likelihood of another pullback.
Binance’s flows confirm this. Whale Ratio at the Bitcoin Exchange is a sharply increasing indicator that major holders of Bitcoins are the main contributors to inflows.
If whales are dominating exchange activity, they may be preparing to face a potential downside. They might sell more or increase their hedge. Bitcoin is the main market and therefore, whales who are concentrated in that area can have a negative impact on Ethereum.
In the meantime, the declining interest in Ethereum supports the notion that traders want to get out of the market rather than maintain the recently broken level.
Fusaka’s upgrade could help change sentiment
Fusaka upgrade It is scheduled for December 3rd and represents an important milestone in Ethereum’s scaling plans. Its primary goals are to lower data loads, decrease the costs of rollup transaction, and optimize block space.
Nodes can verify data without downloading it all, reducing resource consumption and allowing for higher performance with rollups.
All of these improvements, including the increased blob storage capacity, revised fees, a more efficient historical data archive, and a smoother schedule for proposers, work to improve base layer performance and predictability while also lowering user costs.
This will benefit Ethereum on the long term, but it won’t change the current bearish environment. Fee burns will increase if lower fees bring in more activity, and ETH’s economic profile could improve.
Ethereum technical analysis
This chart clearly shows that the market is in a downtrend. The price has been stuck well below any major moving average. Short- and longer-term averages indicate an ongoing pressure to sell. Bollinger Bands widened after a sudden drop. Relative strength index has remained at around 33.
MACD remains negative, despite its attempts to flatten. The commodity channel indicator is leaning neutral. While stochastic is in a low-mid range, it does not have strong momentum.
Support is found near $2700, and deeper support can be found around $2250. Bulls will need to reclaim the 3,001 zone. shift The bearish trend is maintained by staying under the current range and maintaining momentum.
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Source: crypto.news
