- Ethereum trading volume is up 16% in the past 24 hours.
- Major holders’ profit-taking triggered Ethereum’s sudden price drop.
In a rollercoaster ride for the crypto market, Ethereum suffered a substantial decline in the past 24 hours, plunging below the $2,200 mark for the first time in a week. The flash crash on Monday triggered a flurry of activity and raised pivotal concerns among investors regarding the market’s stability and future trajectory.
Recently, the crypto landscape witnessed a significant discrepancy in trading activity. Long crypto traders faced a staggering liquidation of over $354 million in the past 24 hours, significantly overshadowing the $54 million liquidation from short traders. This prevailing negative sentiment emerged despite recent indications of a bullish flag pattern.
However, CoinShares’ latest report unveiled hope amidst the chaos, showcasing a $43 million influx in their weekly cryptocurrency report. Most notably, Bitcoin dominated the inflows, receiving the lion’s share of fund allocations. However, Ethereum trailed behind with an inflow of $9.7 million, considerably lower than Bitcoin’s.
The plummet in Ethereum’s price was starkly evident following the crash, with the asset struggling to maintain stability. Analysts pointed fingers at major holders who had been offloading their holdings, capitalizing on the soaring prices Ethereum had achieved this month, marking its highest point in the past year.
Moreover, macroeconomic uncertainties further amplified the crypto crash. It is exemplified by the imminent release of crucial CPI data and November’s inflation figures. Investors remained on edge, anticipating market fluctuations, especially with the Federal Reserve’s impending decision and statement.
Ethereum Bears vs Bulls
At the time of reporting, Ethereum was trading at $2,218, marking a 1% decline in the past twenty hours. In contrast, trading volume surged by 16% within the same timeframe, reaching $14 billion, indicative of heightened market activity.
An analysis of recent movements suggests a bearish trajectory on the daily chart. The 9-day exponential moving average (EMA) is positioned below the current trading price at $2221. However, the daily relative strength index (RSI) indicates a neutral condition, standing at 56.
If the ETH price manages to go above the $2301 resistance area, then the price will likely test the $2349 level. However, if the bears drive the price below the $2202 level, it will decline further to test the $2198 support level.
