Ethereum Tug of War
Ethereum continues to experience a pullback in its price, with the cryptocurrency recently testing the $4,000 resistance level, a key psychological price mark. Amid this correction, bearish tendencies among investors on Binance have surfaced.
A recent analysis by CryptoQuant analyst Darkfost highlights a significant trend where Binance’s taker buy-sell ratio for Ethereum turned “sharply negative” at the $4,000 mark. This suggests that traders on the exchange have predominantly adopted a selling stance.
Bearish Sentiment Persists
According to Darkfost, the bearish sentiment on Binance has persisted since the start of November, coinciding with Ethereum’s approach to this critical resistance level. While this bearish sentiment could typically signal a potential reversal, Ethereum’s price movement has defied expectations, driven by other influential factors.
ETH Market Performance and Outlook
So far, Ethereum has seen a significant correction in its price, decreasing to as low as $3,616 as of today. At the time of writing, the asset currently trades at a price of $3,621, down by nearly 6% in the past day.
This price performance has unsurprisingly dropped the asset’s market cap by over $40 billion, falling from over $490 billion seen last week to $434 billion today.
Interestingly, despite this price decrease, Ethereum’s daily trading volume has seen an opposite trend, rising from below $60 billion on December 6 to now at $72 billion. Given the current market condition, it is likely that the increase in ETH’s volume is coming from sell-offs.
Institutional Interest Boosts Price Action
Notably, demand for Ethereum Exchange-Traded Funds (ETFs) has surged, showcasing a growing institutional interest that continues to support Ethereum’s price action. The surge in demand for Ethereum ETFs signals a shift in market stance where institutional players increasingly influence price movements.
Institutional interest, evidenced by consistent inflows into Ethereum-focused investment products, seems to have been pivotal in offsetting the selling pressure observed among retail traders on Binance.
Total Liquidations and Long-Liquidations
According to data from Coinglass, in the past 24 hours, 526,828 traders were liquidated, with the total liquidations coming in at $1.58 billion. Out of this total, ETH accounts for roughly $234.72 million.
Long liquidations dominate, reaching $208.83 million, while short traders also had their share losses, registering $25.89 million worth of ETH liquidations.
Conclusion
Ethereum’s price dip is seen as a “healthy” correction, providing a buying opportunity for investors. Despite the bearish sentiment among retail traders on Binance, institutional interest continues to support the cryptocurrency’s price action.
FAQs
What is the current price of Ethereum?
The current price of Ethereum is $3,621.
What is the reason for Ethereum’s price drop?
The reason for Ethereum’s price drop is a combination of bearish sentiment among retail traders on Binance and the cryptocurrency’s approach to the $4,000 resistance level.
What is the impact of institutional interest on Ethereum’s price?
Institutional interest, evidenced by consistent inflows into Ethereum-focused investment products, seems to have been pivotal in offsetting the selling pressure observed among retail traders on Binance.
What is the total liquidation in the past 24 hours?
The total liquidation in the past 24 hours is $1.58 billion, with ETH accounting for roughly $234.72 million.
What is the dominant type of liquidation?
Long liquidations dominate, reaching $208.83 million.
