Ethereum has experienced a decline in its price, signaling a temporary cooling off period after a recent rally fueled by ETF hype. The largest altcoin in the world has seen a 3.7% decrease over the past day and a 2.5% decrease over the past week. Ethereum is now consolidating at lower levels as the market awaits the approval of S-1 forms for ETFs, leading to speculation on whether the rally is over already.
Technical analysis of Ethereum on TradingView shows that the altcoin has been unable to maintain its recent highs and is now trading below key moving averages, indicating a shift to bearish momentum in the short term. The Relative Strength Index (RSI) is also showing a lack of strong buying momentum, with values leaning towards oversold territory. Additionally, Ethereum’s social volume has decreased significantly, suggesting low public interest and sentiment towards the coin, potentially contributing to the price decrease.
Despite the decline in social engagement, the trading volume of Ethereum’s derivatives market has seen a sharp increase of over 70%, indicating heightened market engagement. The long/short ratio across different platforms also shows bullish sentiment on platforms like Binance and OKX, suggesting that traders are still optimistic about Ethereum’s future. On-chain data for Ethereum presents a predominantly bullish scenario, with 89% of holders currently making money at the present price, indicating a strong upward trend that has benefited the majority of investors.
The significant concentration of Ethereum tokens held by large holders (51%) suggests a potential for high volatility due to possible large-scale sell-offs. However, the market appears stable with major holders likely maintaining their positions. While Ethereum bulls seem to be cooling off temporarily, possibly due to the latest US jobs data, the rally is not over yet, with further developments in the market still to come.
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