Major Altcoin Ethereum marked the beginning of a sustained bottom trend, poised for the new week, below the narrow consolidation range on Friday. Altcoin fell for the first time in a month to $2,300 as tensions between the US, Israel and Iran escalated yesterday.
The breakdown has surged seller pressure across the Ethereum futures market, raising concerns about a deeper decline in the future.
Ethereum Bear tightens grip
The bearish bias towards ETH is reflected in Taker Buy/Sales rates, which have consistently posted negative values since Friday. The press conference said this was 0.93 per encryption, indicating that sales orders dominate buy orders across the ETH futures market.
Asset taker’s shopping and sales ratio measures the ratio of trading volumes in the futures market. Values above indicate more buying than selling volume, while values below one suggest that more futures traders are selling their holdings.
The steady dip of ETH taker buy/sell ratios over the past few days points to the futures trader’s climbing sale. This growing sell-side pressure could confirm a weakening of emotions and, if it continues, accelerate the price drop.
Additionally, ETH is well below the 20-day Exponential Moving Average (EMA). This shows bearish feelings surrounding the assets. At press time, this important moving average forms a dynamic resistance that exceeds the price of ETH of $2,497.
The 20-day EMA measures the average price of assets over the last 20 days, giving weight to recent prices. A price falls below the 20-day EMA, which shows short-term bearish momentum, suggesting that the seller is in control.
This further confirms that the bullish structure around ETH will weaken as assets struggle to regain short-term trend support.
Does Ethereum hold the line?
ETH currently trades at $2,272, down 6% amid the broader market pullout in the past 24 hours. The climbing brings pressure on the spot and across the futures market, which will attract ETH towards support at $2,185.
If this support fails, the price of the ETH could plummet to another $2,027.
However, if you buy pressure and gain momentum, your ETH could rebound and rise to $2,424.
Disclaimer
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