Ether price witnessed a severe drop a few days ago, currently failing to maintain a trading position around $3,300. Whenever ETH approached the $3,000 mark, buyers stepped in, defending the support. However, those short-term buyers then exit the market at a peak price. As a result, there’s a steep decline in whale interest, resulting in a decline in volatility for ETH price.
Large Transaction Volume Declines By Billions
According to CoinGlass liquidation data within the past 12 hours, positions worth $110 million have been liquidated. Notably, Ether and BTC positions dominate, with HBAR also witnessing significant liquidations amounting to $7 million, attributed to the token’s surge in volume surpassing $1 billion. Additionally, there were $2.3 million in PEPE liquidations.
Last week, the market experienced a robust recovery following Bitcoin’s halving event, triggered by increased accumulation. However, with short-term holders beginning to sell, the market is currently correcting, and Ethereum’s price is facing a significant selloff at resistance levels.
Data from IntoTheBlock shows that the volume of large transactions involving Ethereum has declined over the past week, dropping from a high of $7.7 billion to $5 billion. This reduction suggests that the recent price drop has deterred major investors from purchasing Ethereum, leading to decreased volatility. In fact, Ethereum’s volatility has reduced from 62% at its peak to 53%.
However, the NVT ratio, which compares the network value to transaction volume, has fallen over the past 48 hours as Ethereum tried to break above $3,300. The faster rise in transaction volume compared to the network value led to a reduction in the NVT ratio toward 60, indicating that Ethereum might be undervalued. This could signal potential for a strong rebound in the coming days.
What’s Next For ETH Price?
Ethereum price surged toward the $3,300 mark; however, it faced intense selling pressure around the level, resulting in a minor correction. As a result, ETH price is currently dropping below immediate Fib levels, testing buyers’ patience at $3,100. As of writing, ETH price trades at $3,162, declining over 2.1% in the last 24 hours.
The 20-day EMA appears to be leveling off, and the Relative Strength Index (RSI) is declining below the midpoint, suggesting a rising bearish dominance. If Ether’s price declines from the 20-day EMA, it might fall to $3,056. This level is crucial for the bulls to hold; failing to do so could lead to a further drop to $2,850.
Conversely, if Ether rebounds above the 20-day EMA, it could empower the buyers. The price could then ascend to the 50-day Simple Moving Average (SMA) at $3,586 and potentially reach $3,700. Surpassing this resistance would indicate that the downturn may have ended, sending the ETH price to consolidate around $4,000.
Currently, the long/short ratio for ETH price is surging, nearing the 1.32, suggesting rising bullish dominance.
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