NEWSLETTER
The price of ethereum has experienced a massive accident today, sending shock waves throughout the cryptographic market.
Many investors now wonder if this is the beginning of a new bearish market or a substantial short -term liquidation event.
Technical analysis
The daily table
As the daily table suggests, the price of ethereum was reduced at the level of $ 2,100 before experiencing a rebound. The $ 3,000 level and the 200 -day mobile average, located around the same price brand, has been broken yesterday.
This has been one of the main factors that contribute to the current accident, at least on the technical side of the events, since the 200 -day mobile average is a key trend indicator, and if the market does not rise soon, A longer and longer and even more deep correction could be expected.
The 4 -hour table
In the 4 -hour table, it is evident that the price has recently tried to break over the great wedge pattern that falls, but the break was false.
This bull trap has led to a considerable fall, since the level of $ 2,800 is also lost and can now be seen as a resistance zone. Therefore, if there is no rapid recovery, consolidation is likely between the levels of $ 2,800 and $ 2,400 for the coming weeks.
Feelings analysis
ethereum open interest
While ethereum's price action indicated some clues that pointed to the current market accident, more research on the underlying market should be done. Analyzing futures market metrics can provide a different image of the current situation.
This table presents the eth price and the 7 -day exponential mobile average of the open interest metric, which measures the total number of open perpetual futures contracts in centralized exchanges.
As the picture demonstrates, while the asset has experienced a massive fall, the open interest still does not show a significant decrease. Therefore, if the clash is going to see as a liquidation waterfall, the futures market has not yet cooled, and there could be more liquidations and falls in the short term in case the current sale pressure persists.
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