Ethereum’s price has been dropping rapidly over the past few weeks, and while it has seemingly slowed down, more downside movement is still possible. Technical Analysis By Edris Derakhshi (TradingRage) The Daily Chart On the daily chart, it is evident that ETH has been experiencing a massive crash since breaking below the 200-day moving average, which is currently located around the $3,000 mark. While the price has even tested the $2,100 support zone during the crash, it has recovered and is currently testing the $2,700 level from below. If the market is able to reclaim this level and the 200-day moving average soon, a new bullish trend could begin. On the other hand, if it fails, the $2,400 support level will be the first target for a subsequent bearish move. The 4-Hour Chart Looking at the 4-hour chart, things look more interesting, as the asset has been moving inside a descending channel pattern lately. Yet, the market is about to test the higher boundary of the pattern, and in case of a breakout, it would likely rally at least toward the recent major high of $2,900. On the other hand, a breakdown of the pattern could lead to a rather quick drop toward the $2,400 region. Sentiment Analysis By Edris Derakhshi (TradingRage) Open Interest During the recent Ethereum crash, a large number of futures traders have been liquidated and kicked out of the market, and not many are willing to return and open leveraged positions at the moment. This is clearly evident in the chart above, which demonstrates the Ethereum open interest metric. It displays the total number of open futures contracts in all perpetual futures exchanges. As the chart depicts, the recent price crash has been simultaneously aggravated by and led to large liquidation cascades, which is shown by the massive plunge in open interest. Yet, this can be a good sign, as the futures market is cooling down, and a dominant buying pressure from the spot market can result in a recovery soon. But, of course, this is heavily reliant on whether the demand is able to overpower supply in the spot market. The post Ethereum Price Analysis: ETH Faces Deeper Troubles, Risks Falling to $2.4K appeared first on CryptoPotato .
