Ethereum Price at Risk of an 18% Decline: Here’s Why

Ethereum Price at Risk of an 18% Decline: Here’s Why
Ethereum Price at Risk of an 18% Decline: Here’s Why

Main meals:

  • Decreased stain purchase and Ethereum ETF flows indicating weakening demand.

  • ETH technical technologies show a decrease to $ 35,000.

The price of Eter’s (ETH) has formed a series of low highlands and low declines on the daily candle scheme since it reached its highest level ever at $ 4950 on August 14.

With the price drop, 4,500 dollars turned into resistance, which is the altcoin funnel for more than 10 days. Let’s take a look at the Bitcoin position at $ 4,500.

Eth/USD daily chart. Source: Cointelegraph/Tradingvief

ETH buyer returns

The ether’s ability to pressure the resistance at $ 4,500 appears to be limited due to the lack of buyers.

The Delta scale explains the instant size, an indicator that measures the net difference between buying and selling trade sizes, a negative net purchase on the stock exchanges even with the integration of the ETH price.

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This indicates that price recovery may lack momentum, which may lead to continued monotheism or a deeper decline.

Without real demand, any attempt to collapse may lack the force required to push ETH above the main levels. Therefore, buyers must intervene to continue the long -term trend.

Post -Bitcoin Delta. Source: Glassnode

The demand for Ethereum ethereum etfs also decreased, with these investment products published every day last week, and data from Sosovalue appears.

On Friday, it witnessed that Ether Etfs is 446.8 million dollars, thus reaching a total flow last week to -787.6 million dollars. As such, you should find ETH new buyers out of the current range to $ 5,000.

Ethereum ETF stain stream. Source: sosovalue

Reducing the open interest of ether

The decrease in the demand for the leverage led to a sharp decrease in the open benefits of the Ethereal futures contracts (OI), which decreased by 18 % to 58 billion dollars at the time of writing this report, from its highest level ever of $ 70 billion on August 23.

The open interest measures the total number of ETH futures available on each derivative exchange, including CME, Binance, Bybit and OKX.

Eth Futures Commune OpenTest, USD. Source: Coinglass

Although long futures (buyers) and short pants (sellers) are always corresponding to, the OI decline indicates a decrease in leverage and market participation, which is likely to indicate a feeling of bullish weakness.

For example, a 18 % decrease in OI between July 28 and August 3 was accompanied by a 15 % decrease in the ETH price.

Ethereum network activity decreases at the price

As CointeleGRAph said, ETHEREUM revenues, a network fee that accumulates on ether holders as a result of the distinctive code burns, decreased by 44 % in August, even with the rise in the price at all.

August’s total revenue reached more than $ 14.1 million, a decrease of $ 25.6 million, According to To tokeen terminal. The decrease occurred despite the ETH mobilization by 240 % since April, and ETH exports its highest level ever at $ 4,957 on August 24.

The decrease comes along with a 10 % decrease in network fees over the past thirty days, to about $ 43.3 million, data from Nansen.

30 -day performance Blockchains. Source: Nansen

A large part of the low ETHEREUM revenues came as a result of the DENCun upgrade in March 2024, which reduced the transaction fees for layer 2 layer networks using them as a basic layer for the spread of transactions.

This reduces the revenue of the fees and affects the ETH contraction mechanism, which is likely to weaken the momentum in the price of the ether.

ETH prices put $ 3550 in play

Since mid -August, the ETH price has been a triangular style scattered on the daily chart, and it is characterized by a flat support mixed with a line resisting down.

The descending triangle chart style is seen formed after a strong upward trend as a declining reversal indicator. As a rule, the preparation is resolved when the price breaks below the level of flat support and falls by the maximum height of the triangle.

A daily candlestick below the triangle support line at 4200 dollars will confirm the continuation of the downward trend towards the goal of the pattern at 3550 dollars, a decrease of 18 % from the current price levels.

Eth/USD daily chart. Source: CointeleGRAPH/TradingView

However, some analysts argue that the bounce can happen earlier. Investor and merchant TED PLOWOWS said that the price of ETH “looks strong” above $ 4200, adding that the deeper decline to re -test between $ 3800 and $ 3900 was possible before reflection.

As Cointelegraph said, another possible area to monitor a recovery is $ 3,745 if it is lost at $ 4,250.

This article does not contain investment advice or recommendations. Each step includes investment and risk trading, and readers must conduct their own research when making a decision.

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