The crypto market continues to make sharp corrections in response to the global market. Ethereum lost about 10% of its value last week and started the first day of the week in the red. Earlier today, ETH hit a five-week low since March 18th.
Technical analysis by Grizzly
In the daily time frame, the daily MA100 (marked in blue), which supported ETH for the past two weeks, eventually broke down.
The price is currently above the $ 2,800 horizontal support. This is the first important level of support in our daily time frame. Meanwhile, buyer takers continue to retreat (marked in red).
Even if the Bulls were able to defend their support for $ 2,800, ETH would have to break many important levels along the way and support is now at the resistance level. From the bearish side, support at $ 2,500 may be retested if bears continue to dominate the market.
In general, sellers seem to dominate the market and there are no signs of bullishness on the charts. You have to wait for when the buyer will return to the market.
MA20: $ 3058
MA50: $ 3021
MA100: $ 2914
MA200: $ 3476
In the 4-hour time frame, the trend seems to be completely bearish. The Fibonacci retracement level of 0.618 is currently lost, but the Bulls couldn’t hold it last week. The most important LTF support level during this period is Fib 0.786, which is $ 2700.
On-chain analysis: Open interest
Open interest It is defined as the number of open positions on the derivative exchange, including both long and short positions.
As open interest (OI) increases, more liquidity, volatility, and attention are being brought to the derivatives market. Traders are closing futures positions as open interest (OI) declines.
Second, this can raise the possibility of long / short squeeze caused by sudden price fluctuations.
As shown in the chart below, despite unprecedented price declines in recent months, open interest has increased and can cause significant volatility in the short term.
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Cryptocurrency chart According to TradingView.