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Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is poised for a massive price decline as it has formed a bearish price action pattern on its daily timeframe. However, investors and long-term holders seem to be taking advantage of this market outlook and are continuously accumulating tokens, as reported by the on-chain analytics firm Coinglass.
$321 Million Worth of ETH Outflow
Data from spot inflow/outflow revealed that during Ethereum’s ongoing price decline, exchanges have witnessed an outflow of over $321 million worth of Ether tokens, suggesting potential accumulation.
Such outflows in a bearish outlook hint at an ideal buying opportunity and could lead to buying pressure and a further upside rally.
Traders Strong Bets on Short Positions
Meanwhile, intraday traders seem to be following the current market sentiment. According to Coinglass data, traders are strongly betting on the short side.
As of now, the two major liquidation levels are near $2,680, where traders hold $73.50 million worth of long positions, while $2,780 is another major liquidation level, where traders hold $325 million worth of short positions.
Source: Coinglass
This data shows how bears are betting on the current sentiment, which is leading to a continuous price drop.
Current Price Momentum
Ether is currently trading near the $2,690 level and has witnessed a price drop of 1.30% in the past 24 hours. However, during the same period, due to the bearish market sentiment and ongoing market uncertainty, its trading volume dropped by 25%, indicating lower participation from traders and investors compared to the previous day.
Ethereum (ETH) Technical Analysis and Upcoming Level
With all these factors, experts’ technical analysis suggests that Ethereum has turned bearish, as it has failed to hold above the crucial support level of $2,800 and seems to be continuously falling.
Based on the recent price action and historical momentum, if ETH closes a daily candle below the $2,700 level, there is a strong possibility it could fall by 20% to reach the $2,200 level in the future.
However, ETH’s Relative Strength Index (RSI) is near the oversold area, suggesting a bearish trend and the potential for further price drops.