meanwhile ethereum price There was a brief rebound towards the end of Wednesday, but the underlying structure remains significantly weak. During this highly negative period, major altcoins have made significant moves confirming a bearish breakdown, which could impact the short-term outlook.
Sellers currently dominating the Ethereum market
Ethereumthe second-largest digital asset, the crypto market is showing signs of increasing weakness following a decline across the broader crypto market. ETH is currently showing a bearish breakdown as volatility always traps the market.
CryptoQuant author and data expert PelinayPA reported This development appears to firmly shift market control to sellers. The break below a key support level has made momentum loss more of a concern, with traders bracing for further downward pressure.
From a technical perspective, looking at Ethereum price movements combined with Binance long and short liquidation data, the market structure appears to be deteriorating. Looking at the chart, ETH has made a downside breakout from the triangle formation, and this move indicates a change in consolidation in favor of sellers.
Although a collapse below the lower bound of the triangle is not enough to conclusively indicate a bearish scenario, the moving averages are also starting to slope downward. This development confirms the downward momentum.
Furthermore, the short-term moving average is still below the long-term average. Continued weak momentumcausing the relief rally to face selling pressure. Pelinay emphasized that a decline in the blue moving average indicates a decline in the overall trend structure.
In addition to this bearish breakdown, another important element discovered on the chart is Binance’s liquidation data. most of the world Ethereum derivatives The volume flows through Binance, the clearing clusters that form on the platform, are critical to the overall direction of the market.
Long leveraged positions are gradually being unwound
Rapid liquidations that coincide with price declines are usually a sign that long leveraged positions are being flushed out and the market is undergoing a downside reset. These periods are primarily characterized by aggressive position unwinding, such as: Institutional investors and large market participants.
Perrinet added that the market’s failure to show a strong recovery after the recent surge in liquidations also reflects continued weakness in the price structure. From a technical perspective, the possibility of a deeper pullback of the chart’s lower support zone still exists, but for the time being the downside breakout remains valid.
Therefore, if Ethereum is unable to recover from the broken triangle structure, selling pressure will intensify and the price may aim towards the $1,350 support level. at this point Ethereum whale They are starting to withdraw from the market. ant chart highlighted Approximately 60 whale wallet addresses holding at least 10,000 ETH have either completely emptied or consolidated their balances over the past two months.
When individual entities with multi-million dollar positions exit the network within such a short period of time, it often signals profit taking and asset reallocation by institutional investors. These large investors are now using recent liquidity to hedge risk, reflecting a clear lack of medium-term confidence.
This decline in the number of whales coincides with the recent large influx into crypto exchanges. Data shows that the path of least resistance will continue to decline in the near future, but Ali is keeping a close eye on the $2,000 floor.
Featured image from Getty Images, chart from Tradingview.com
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