Last week was one of the most volatile weeks for Ethereum (ETH). After dropping to its lowest level in five months at $2,160, the second-largest digital currency managed to recover slightly and offset its losses. Recent data shows that Ethereum’s leverage ratio decreased by 15% in the past two days, reaching 0.54 from 0.64, the lowest level in the past six weeks. This decline occurred after a significant drop in open positions to $22 billion, the lowest amount since late November. Historically, whenever the leverage ratio has decreased, Ethereum’s price has tended to decline. If history repeats itself, Ethereum may continue to drop until traders start opening new long positions. On the other hand, 375,000 Ethereum has been withdrawn from derivatives exchanges in the past three days. Additionally, these withdrawals coincided with an increase in deposits to spot exchanges, indicating that traders are closing leveraged positions and selling Ethereum on the spot market. These changing dynamics may exert downward pressure on Ethereum but also reduce the risk of liquidation and market volatility. In Ethereum’s daily chart, a bearish crossover has formed, where the 50-day simple moving average crossed below the 100-day simple moving average, indicating a strengthening bearish trend. Furthermore, Ethereum may return to the $2,160 level, where liquidity has not been collected. To overcome the downward pressure, Ethereum must break the resistance at the 200-day simple moving average ($2,973); breaking this resistance level has always been positive for Ethereum’s price. Another important resistance level is at the 50-day simple moving average ($3,304), breaking which can create strong bullish sentiments in the market. Visit the live digital currencies price page to monitor the prices of all tokens and cryptocurrencies in real-time.
