Is Ethereum Price at Risk? Warning of Price Chart Decline

Ethereum (ETH), the second largest cryptocurrency by market capitalization, appears to be bearish and preparing for a price drop. Reasons for this include ETH lagging behind top assets such as Bitcoin (BTC) and Solana (SOL), its current price action, the latest whale sell-off, etc. Ethereum (ETH)'s slow performance With stable performance and slow compared to other assets, whales and investors have recently sold a large amount of ETH. Recently, CoinPedia reported that an inactive whale, holding 398.889 ETH worth $1.34 billion, sold 73.356 ETH worth $224 million. This significant sell-off has created latent selling pressure on the asset and led to a change in user sentiment. Technical analysis of Ethereum and upcoming According to technical analysis by experts, ETH is currently showing a double top price pattern, accompanied by bearish divergence on both the daily and four-hour charts. Historically, when an asset forms these patterns, the price tends to decline significantly.

Based on the current price movement, if ETH closes a four-hour candle below $3,250, there is a high probability that the price will drop by 8%, down to $3,010 in the coming days. Currently, the assets are trading above the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend. Meanwhile, the Relative Strength Index (RSI) suggests that the assets still have the potential to increase in price in the coming days. The prospect of a price drop for ETH will be invalidated if it breaks and closes a four-hour candle above $3,400. On-Chain index signals weak sentiment As of now, the data on the ETH chain supports its bearish outlook. According to blockchain analysis firm Coinglass, the Long/Short ratio of ETH is 0.90, reflecting a strong bearish sentiment among traders. In addition, its open interest has decreased by 5.4% in the past four hours and 1.75% in the past 24 hours. This decrease in open interest indicates that traders are losing interest in ETH, leading to the liquidation of open positions. Current price momentum Currently, ETH is trading at nearly $3,315 and has recorded a 2.1% decrease in the past 24 hours. During the same period, its trading volume has decreased by 29%, indicating lower participation from traders compared to the previous day.