Ethereum Drops 12%, Market Skepticism Grows, Bounce Expected

Share on Facebook Share on Twitter

Ethereum Drops to $2.3K – Is a Recovery in Sight?

Ethereum [ETH] has significantly lost value in recent days. Between January 16 and 22, the price fell by almost 12%. The support mark of $2310 was tested but was able to hold up until the time of publication. Data from the derivative markets show that market participants are cautious and do not expect another short-term ETH rally.

The Current State of the Ethereum Market

In addition to price development, the analysis of the derivative markets also provides valuable information. Ethereum has been on a downward trend for the last ten days, parallel to Bitcoin. The fall below the support mark of $2400 was significant. A month ago, the bulls were still fighting hard to drive prices above this mark. Therefore, the decline reflects the dominance of the bears.

The Ethereum funding rates show that the strong bullish sentiment of late December and early January has been replaced by skepticism. On January 3, the funding rates plummeted from six-month highs to +0.0105%. The positive rates show that more participants were willing to go long than short, but they were not an indicator of a strong bullish sentiment.

alert-circle
You can also find us on Telegram: Click here to follow our Telegram channel.

How Far Could the Ethereum Price Fall?

An analysis of the order book data from MobChart shows ETH limit buy orders worth $2.71k at the $2300 mark. An additional $2.89k ETH in limit orders were present at the $2.2k level. Therefore, these could be the two levels where a reversal could begin.

In the north, the $2.6k and $2.5k levels had a large number of ETH sell limit orders. To better understand the short-term tendency of ETH, AMBCrypto reviewed the liquidation level data from Hyblock. Notably, the cumulative Liq Level Delta was strongly negative. This shows that the short liquidation levels far outweighed the long liquidation levels.

As a consequence, a rise in ETH prices would trigger more liquidations than a further decline. This suggests that the likelihood of a bounce is higher than further losses.

Recovery in Sight?

In the north, the $2440 and $2490 levels have estimated liquidations worth $80 million. Together with the buy wall at $2.3k and the sell wall just below $2.5k from the order book heatmap, a bounce to $2490 seems likely.

Sources: AMBCrypto, CryptoQuant, MobChart, Hyblock

Share on Facebook Share on Twitter
Casinos: 47
Profile Ethereum
Symbol ETH
Coin type Alt Coin
Transaction Speed Medium
Pros
  • Second largest cryptocurrency
  • Accepted in many casinos
  • High transaction speed
Cons
  • Partial bugs in smart contracts
Price 3.285,64 €
Percent Change 24h -1,58 %
Percent Change 7d 1,20 %
Percent Change 30d -6,09 %
Percent Change 60d 11,67 %
Percent Change 1y 97,23 %
Market Cap 401.953.397.405,00 €
Official Links
Socials Reddit | X
Best 3 Ethereum casinos

Latest News

Isabella Brown

Created by

Online Gambling, Greece and my dog Gringo are my three favorite things in my life. Before working for Kryptocasinos.com I was leading the content team of an iGaming Online magazine where I was focused on researching casinos, their licenses and the connection between the members of the industry.
Reviewed by
Nerd of Numbers

Last update: 11. June 2024

kryptocasinos.com Logo Advertising transparency

We are independent, transparent and funded by revenue we generate when you sign up at a casino through us.

Our goal is to help you make better decisions when choosing a casino by offering different information, providing filters and comparison tables, and publishing objective content. Thus, we give you the opportunity to research for free, compare casinos and make your decision based on that.

We cannot guarantee that a casino that is very good for us will fit your type of player and your circumstances.

Why trust us?

We work according to transparent editorial guidelines and disclose our testing methods as well as funding. This article may contain links to our partners, but this does not influence our objective view in any way.

🍪
We use cookies. By using this site, you accept them.