- 52.67% of top traders held short positions, while 47.33% held long positions
- A section of whales appeared to be accumulating ETH too
Ethereum (ETH), the second-largest cryptocurrency by market cap, seemed to be showing signs of a potential price decline after forming a bearish pattern on the charts, at press time.
Ethereum’s (ETH) bearish outlook
Worth noting, however, that parts of his bearish trend are not only evident in ETH, but also across major cryptocurrencies such as Bitcoin (BTC), XRP, and Solana (SOL).
Since December 2024, ETH has been on a downtrend and has broken down and successfully retested its breakdown level – Supporting the bearish sentiment.
Source: ETH/USDT, TradingView
ETH price prediction
Based on its recent price action and historical momentum, if this sentiment remains unchanged, there is a strong possibility that ETH could drop by 10% to hit the $2,850-level in the future. However, technical indicators still alluded to the possibility of a price rebound.
On the daily timeframe, for instance, ETH’s Relative Strength Index (RSI) was near the oversold area – Hinting at a potential recovery. This, while the 200 Exponential Moving Average (EMA) indicated that the asset was on an uptrend.
Traders maintain a bearish bias
Despite the bullish outlook of these indicators, however, traders remain hesitant to take long positions, as reported by the on-chain analytics firm CoinGlass. At press time, ETH’s long/short ratio stood at 0.94, indicating strong bearish sentiment among traders.
When assessed, 52.67% of top traders held short positions, while 47.33% held long positions.
However, traders’ positions have been rising significantly during this bearish period. Especially as ETH’s Open Interest increased by 4.5% in the last 24 hours. These metrics indicated that intraday traders are bearish, which could lead to a potential price drop in the coming days.
Whales’ recent activity
In addition to traders, long-term holders and whales appear to be accumulating ETH too, as revealed by CoinGlass’s spot inflow/outflow metric.
Source: CoinGlass
In fact, data revealed that exchanges have seen outflows of over $21 million worth of ETH in the last 24 hours, indicating potential accumulation that could create buying pressure and a buying opportunity.
