The alternative saw a slow but steady decline in funding rates over the course of the previous day.
After completing a 180 degree turn from the point of resistance located at $1,648 in the past few days, Ethereum has seen losses in the double digits. The subsequent breach of the trend-line resistance places ETH in a position to see prolonged falls. In the meantime, elongating Ethereum's most recent rebound from its closest support might provide the cryptocurrency with the support it needs to test the limits of its resistance at $1,300. During the time that this article was being published, the price of Ethereum was near $1,258.15.
Will Sellers Maintain Their Efforts to Get More?
Historically, Ethereum bears have consistently shown their motives to initiate a drop from the trend-line resistance for more than seven months. This resistance has been in place for the past seven months. In addition, the ceiling set at $1,648 prevented the most recent jump from going above this trend line, which invited a strength that was bearish.
As a direct result of this, the price of Ethereum fell below the limitations imposed by the 20 and 50 Exponential Moving Averages. A bearish pennant pattern was developed in the 24 hour chart as a result of the recent price activity. Furthermore, if the 20 Exponential Moving Average continues to act as a barrier, Ether may go below the support that is the closest to its current price.
In the event that these developments take place, $1,095 might help support rebounds. In the meantime, bearish invalidations would be confirmed if there was an immediate rebound that went beyond the resistance of the trend line and the short-term Exponential Moving Averages. Due to this factor, purchasers ought to push the price higher than $1.360.
The relative strength index (RSI) showed reversals from the oversold territory, indicating that the momentum of sales was beginning to ease. The fact that the MACD dropped below the zero level, however, indicated that the momentum had shifted toward sellers.
Analysis of the Funding Rates
According to data provided by Coinglass, over the course of the previous few hours, funding rates for Ethereum on all exchanges either remained close to zero or switched to a negative value. While this publication was being written, the mood of investors in the futures market began to shift, which occurred at the same time that markets were struggling to recover. Before making any predictions in the coming days, buyers of Ethereum might look for signs of a possible reversal on this side.
Last but not least, traders and investors should keep an eye on Bitcoin because ETH has a correlation of 90% with BTC. The seven-day and twenty-four-hour charts for the most valuable digital coin in the world showed bearish activity. At the time this article was published, the price of Bitcoin was trading at $16,620, reflecting a loss of 1.30% over the course of the previous day. In just seven days, the cryptocurrency experienced a loss of 6.32%.
In light of the recent downward trend in market prices, what do you think the future holds for Ethereum? Feel free to leave your thoughts in the comment section below.
