Ethereum opened Friday at $2,631 and retraced after a slight uptick. It plummeted, losing the $2,600 support before rebounding at $2,513
The asset experienced a change in trading sentiment a few hours ago but failed to sustain it. Readings from the 2-hour chart indicate that selling congestion has resumed, and the price may slip lower.
Nonetheless, data from DeFiLlama reveals other negative readings. Traders are moving capital from the Ethereum ecosystem as they anticipate further declines. Outflows exceed 18 million ETH at the time of writing. DEX volume also plummeted in the last 24 hours due to the drop in liquidity.
However, the asset saw a slight increase in its total value locked. The trend may indicate a change in investors’ strategy as they stake more assets.
Other metric readings from CryptoQuant show that the asset is seeing massive selling pressure. The derivatives market reflects this trend as short positions increase. Open interest declined by over 4% as fewer trading activities occurred in the sector.
Nonetheless, the 2-hour chart showed that the largest altcoin experienced massive buybacks a few hours ago. Onchain data agree with this trend as exchange reserves are declining. It reveals that more investors are withdrawing assets from the trading platform than are inflowing.
Ethereum May Retest $2,400
The 2-hour chart indicates growing selling pressure at the time of writing, which may result in a further price decline. Its reading agrees with those from the one-day chart. The average directional index continues downward amid the slight improvement, hinting at the continuation of the downtrend.
Ethereum exhibits further bearish behavior as the relative strength index continues to decline. It retraced from 64 to 57 in two days. The metrics reflect no impending change to the ongoing trend, pointing to its continuation. It is worth noting that the moving average convergence continues printing sell signals.
Nonetheless, the 50-day and 200-day moving averages maintain their bullish trajectory amid the selloffs.
The Fibonacci retracement levels point to key levels to watch. Ethereum lost the 61% fib level a few hours ago. The metric hints at further declines that may see the asset retest the 50% fib level at $2,379. Nonetheless, previous price movement suggests that the largest may rebound around $2,440.
The pivot point standard predicts a steeper decline. ETH retraced after failing to decisively break the third resistance. It may continue downwards until it retests the second pivot resistance at $2,284.
A closer look at the one-day chart shows that almost all indicators are negative. This is the same reading on Ethereum classic. It experienced one of its biggest declines on Friday, retracing from $ 18.20 to $ 16.80. It is down by over 6% amid slight recovery.
The average directional index continues to decline amid the slight improvement, suggesting the continuation of the downtrend. ADX’s readings coincide with those from RSI as it retraced from 48 to 42 in two days. The metrics reflect no impending change to the ongoing trend, pointing to its continuation.
Further data from the PPS shows ETC risks plummeting below $16. It lost the first pivot resistance on Thursday and may continue downwards until it tests the pivot point at $15.6.
