Ethereum (ETH)
Ethereum has been in a downtrend since breaking below $3,000 six weeks ago, indicating that the pullback may continue.
Reports suggest that the United States may reject Ethereum ETF spot applications, exacerbating market pessimism.
According to technical analysis, analysts predict that if these ETF applications are rejected, the Ethereum price will go even lower. However, the duration of this decline remains uncertain.
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The Fibonacci retracement levels are calculated based on ETH’s drop from $4,093 to $3,056.
Although this has not significantly altered the overall market structure over a longer time frame, ETH breaking below $3,000 in mid-October tilted the scales towards a bearish structure.
Furthermore, the On-Balance Volume (OBV) broke below a key level. Currently, the $3,000 resistance area is significant, with momentum favoring the bears, as indicated by an RSI reading of 40.5.
Prices are expected to potentially drop below $2,800, with a focus on the 50% and 61.8% extension levels. However, it is currently uncertain whether Ethereum is undergoing a V-shaped reversal or consolidating at these levels.
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Liquidity chart analysis shows that the short-term rebound has ended. Just 24 hours ago, the cumulative liquidation levels were significantly negative, indicating more short liquidations than long liquidations.
Shortly thereafter, the price rebounded from $2,870 to $2,990, wiping out late sellers.
Currently, the cumulative liquidation levels remain negative but less extreme, indicating further downside potential. The $2,840 area becomes a short-term target for the Ethereum price.
Ether Is 2500 the Next Target for Bears 