Ether price saw a sharp decline a few days ago, currently failing to maintain a trading position around $3,300. Every time ETH approached the $3,000 mark, buyers stepped in to defend the support. However, these short-term buyers then exit the market at a record price. As a result, whale interest decreases sharply, leading to a decrease in ETH price volatility.
Large transaction volume declines by billions
According to CoinGlass liquidation data over the past 12 hours, positions worth $110 million were liquidated. Notably, Ether and BTC positions dominate, with HBAR also witnessing significant liquidations amounting to $7 million, attributed to the token's volume surge surpassing $1 billion. Additionally, there were $2.3 million in PEPE liquidations.
Last week, the market saw a strong rally following the Bitcoin halving, triggered by increased accumulation. However, as short-term holders begin to sell, the market is currently correcting and Ethereum price is facing a significant decline to resistance levels.
Data from IntoTheBlock shows that the volume of large transactions involving Ethereum has declined over the past week, from a high of $7.7 billion to $5 billion. This reduction suggests that the recent price drop has deterred major investors from purchasing Ethereum, leading to a decrease in volatility. In fact, Ethereum's volatility dropped from 62% at its peak to 53%.
However, the NVT ratio, which compares network value to transaction volume, fell over the past 48 hours as Ethereum attempted to surpass $3,300. The faster increase in transaction volume relative to network value has led to a reduction in the NVT ratio towards 60, indicating that Ethereum may be undervalued. This could signal the potential for a strong rebound in the coming days.
What’s next for the ETH price?
Ethereum price surged to $3,300 mark; however, it faced intense selling pressure around the level, leading to a minor correction. As a result, ETH price is currently falling below immediate Fib levels, testing the patience of buyers at $3,100. At the time of writing, the ETH price is trading at $3,162, down over 2.1% in the last 24 hours.
The 20-day EMA appears to be stabilizing and the relative strength index (RSI) is decreasing below the midpoint, suggesting increasing bearish dominance. If Ether price declines from the 20-day EMA, it could fall to $3,056. This level is crucial for the bulls to maintain; failure to do so could result in a further decline to $2,850.
Conversely, if Ether bounces above the 20-day EMA, it could give power to buyers. The price could then rise to the 50-day simple moving average (SMA) at $3,586 and potentially reach $3,700. Breaking past this resistance would indicate that the downturn may be over, which would send ETH price consolidating around $4,000.
Currently, the long/short ratio of ETH price is sharply rising, approaching 1.32, suggesting increasing bullish dominance.