Key Points
- Ethereum has experienced a price retracement, with a 2.70% decline over the past 24 hours.
- Market indicators suggest a possible further decline due to weakening buying pressure.
Ethereum [ETH] has recently seen a dip in its price, a phenomenon known as a retracement. This has resulted in a 2.70% decline over the past day.
The downturn could potentially continue, reversing the 1.62% gain that Ethereum [ETH] recorded over the previous week.
ETH faces continued weakness
There are currently no bullish signals on the Ethereum [ETH] chart, suggesting a possible further decline as the cryptocurrency seeks an optimal liquidity level to support a price increase.
The nearest liquidity zone is between $2,536.47 and $2,484.44. If the price enters this region, it could enable Ethereum [ETH] to rally back to $2,820.92.
If Ethereum [ETH] falls below this demand zone, it might trigger a stop hunt, a strategy where traders seek additional liquidity before making a final upward push.
A prolonged downward movement would suggest that Ethereum [ETH] has entered a bearish trend.
Traders seek momentum in ETH market
The market appears to be seeking momentum, suggesting a potential decline from its current price of $2,654.02.
The Relative Strength Index (RSI) for Ethereum [ETH] is currently at 58.15 but is trending downward, indicating that the price may decline as it seeks a demand zone.
The MACD, while still in positive territory, has shown a notable decline in momentum. This suggests that although the overall market health is good, buying pressure is gradually diminishing.
Open Interest, an indicator of trader sentiment, indicates that traders are predominantly positioning themselves to short the asset. Open Interest has declined to $13.56 billion, a 2.89% decrease.
If this trend continues, it suggests that selling pressure may drive the asset lower, although it could still maintain a bullish trend.
