ETH/USD Daily Chart (Coinbase) – Source: TradingView
If a price channel is starting to form, the first stop would be the $3,000 level in the near term, followed by a much deeper push to $2,700 if negative momentum accelerates.
The Relative Strength Index (RSI) has not yet reached its extremes. Hence, this could be just the beginning of a correction that started after ETH failed to stay above $4,700 multiple times.
Volumes back when ETH trespassed the $3.4K threshold spiked. This reflects a potential long-squeeze and high liquidations confirm it. Hence, late buyers may get the chance to scoop up ETH at $3,000 soon unless we get some unexpected positive catalyst.
For now, the Fear and Greed Index currently sits at 24, down from a 30-day peak of 62, indicating a radical shift in investors’ sentiment. Paired with the loss of key supports, this favors a bearish price prediction for Ethereum.
Hourly Chart Offers Attractive Entry for Short Sellers
Crypto liquidations in the past few days have spiked as Ethereum (ETH) has dropped from around $4,200 to $3,300 at the time of writing – a 21% loss in just 10 days or so.
Data from CoinGlass shows that over $3.4 billion worth of long positions have been wiped out of the market since November started. At a point when market participants were already opting to stay on the sidelines after the October 10 flash crash, this latest wave of liquidations does not contribute to improving sentiment at all.