Ether price witnessed a significant drop a few days ago and is currently unable to sustain its trading position around $3,300. Every time ETH approached the $3,000 level, buyers stepped in to protect the support. However, these short-term buyers then exit the market at the peak price. As a result, interest in whales will drop sharply and ETH price volatility will drop.
Large-scale trading volume drops by billions
According to CoinGlass liquidation data in the past 12 hours, $110 million worth of positions were liquidated. Notably, Ether and BTC positions are dominant, with HBAR also witnessing large-scale liquidations reaching $7 million due to a surge in token volume to over $1 billion. Additionally, PEPE's liquidation amount was $2.3 million.
Last week, the market experienced a strong recovery following the Bitcoin halving event, triggered by increased accumulation. However, the market is currently in a correction as short-term holders have started selling, and Ethereum price is facing a significant drop at the resistance level.
The volume of large transactions related to Ethereum has declined over the past week, falling from a high of $7.7 billion to $5 billion, according to data from IntoTheBlock. This decrease suggests that the recent price drop has deterred major investors from purchasing Ethereum, leading to a drop in volatility. In fact, Ethereum's volatility has dropped from a peak of 62% to 53%.
However, the NVT ratio, which compares network value to trading volume, has declined over the past 48 hours as Ethereum attempted to break above $3,300. The rapid increase in transaction volume compared to network value has driven the NVT ratio down towards 60, indicating that Ethereum may be undervalued. This could signal the possibility of a strong rebound in the coming days.
What’s next for ETH price?
Ethereum price soared towards the $3,300 level. However, it faced intense selling pressure near this level, resulting in a small correction. As a result, ETH price is currently below the immediate Fib level, testing buyers’ patience at $3,100. At the time of writing, ETH price is trading at $3,162, down more than 2.1% in the past 24 hours.
The 20-day EMA appears to be leveling off and the Relative Strength Index (RSI) has fallen below the midpoint, suggesting an increasing bearish dominance. If Ether price falls from the 20-day EMA, it could fall to $3,056. This level is very important for bulls to maintain. Otherwise, it could fall further to $2,850.
Conversely, if Ether rebounds above the 20-day EMA, it could provide leverage to buyers. Thereafter, the price could rise to the 50-day simple moving average (SMA) of $3,586 and reach $3,700. Once this resistance is crossed, the economic downturn may be over and ETH price will stabilize around $4,000.
Currently, the long/short ratio of ETH price has risen sharply and is approaching 1.32, suggesting a growing bullish dominance.
