Ethereum

Flow

Long

bullish

Ethereum price has been volatile for the last few weeks, creating optimism and fear among market participants. The asset recently grazed $3,600 before retracing down and settling near a zone of major support. The market remains uncertain about the next price movement. On-chain analysis reveals over $800 million worth of ETH could go underwater if the asset loses its current support. Technicals suggest mixed sentiment with a slight bias to the downside. 
<h2 id="ethereum-price-wants-to-go-lower">Ethereum Price Wants to Go Lower</h2> 
<a href="https://coingape.com/price/ethereum">ETH price</a> is currently trending from neutral to bearish. The price is moving within a descending triangle pattern and is currently trading near the lower boundary.&nbsp; 
The price of ETH is also below the 50-day EMA (green line) and slightly above the 200-day EMA (black line), indicating mixed sentiment with a slight bearish bias. 
Additionally, recent candlestick patterns indicate indecision in the market, with mixed small-bodied candles showing a lack of clear directional momentum. There is potential for a significant move upon a breakout from the descending triangle pattern. 
Ethereum’s price has key support levels of around $3,130 (200-day EMA), and the gray-shaded area is around $3,000, which has acted as a significant support zone in the past. 
On the flip side, the price of ETH faces a couple of resistance levels of around $3,332.12 (50-day EMA), and the upper boundary of the descending triangle around $3,600. 
The Relative Strength Index (<a href="https://coingape.com/glossary/rsi-relative-strength-index/">RSI</a>) is currently at 49.18, indicating a neutral position and no clear overbought or oversold condition. This suggests a potential for movement in either direction, further adding to the mixed sentiment. The Chaikin Money Flow (CMF) is at 0.07, indicating a slight positive money flow, but not strong enough to suggest significant bullish momentum. 
<img decoding="async" class="aligncenter size-full wp-image-210743" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19.jpeg" alt="Ethereum Price" width="1280" height="538" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19-300x126.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19-1224x514.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19-768x323.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.19-150x63.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px"> 
The trading volume is relatively low, indicating a lack of strong buying or selling interest. A spike in volume would be necessary to confirm any breakout from the current pattern. 
<a href="https://coingape.com/price-predictions/ethereum-eth-price-prediction/">Ethereum price forecast</a> shows the the prevailing trend is currently bearish. However, if price can bounce from the 200 EMA and breakout above $3,600, it would signal market strength, turning the asset bearish and invalidating the bearish thesis. The next targets for ETH price would be $3,800 and $4,000. 
<h2 id="eth-on-chain-analysis-reveals-more-downside-probable">ETH On-Chain Analysis Reveals More Downside Probable</h2> 
Data from <a rel="nofollow" href="https://coinalyze.net/ethereum/open-interest/">Coinalyze</a> shows Ethereum open interest (OI) dropped 2.66% in the last 24 hours. Open interest shows the total open contracts on an asset and it increases when a new contract is added (whether Long or Short). Combined with the decreasing price, it signals ETH price may drop even lower. 
<figure id="attachment_210745" aria-describedby="caption-attachment-210745" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-210745" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.06.jpeg" alt="Ethereum open interest " width="937" height="230" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.06.jpeg 937w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.06-300x74.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.06-768x189.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.08.06-150x37.jpeg 150w" sizes="(max-width: 937px) 100vw, 937px">
 <figcaption id="caption-attachment-210745" class="wp-caption-text">
 Ethereum open interest
 </figcaption>
</figure> 
This is worrisome because, according to Break Even Price (BEP) data from <a rel="nofollow" href="https://app.intotheblock.com/coin/ETH/deep-dive?group=financials&amp;chart=breakEvenPrice">IntoTheBlock</a>, which shows the price that the asset would need to reach for an address to break even, over 258,000 ETH (~$800 million) could be in jeopardy if Ethereum price falls below $3,065. 
<img decoding="async" class="aligncenter size-full wp-image-210746" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49.jpeg" alt="eth Break Even Price" width="1280" height="357" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49-300x84.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49-1224x341.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49-768x214.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.13.49-150x42.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px"> 
Additionally, CryptoQuant data shows Ethereum exchange reserves increased by 0.44% in the last 24 hours and 0.76% in the last 7 days. As the exchange reserve continues to rise, it indicates higher selling pressure. CoinGecko shows 24-hour trading volume for Ethereum is down 3%. Coupled with falling prices, it cements the bearish outlook. 
<img decoding="async" class="aligncenter size-full wp-image-210747" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29.jpeg" alt="Ethereum exchange reserves" width="1027" height="578" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29.jpeg 1027w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29-300x169.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29-768x432.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29-678x381.jpeg 678w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-02-at-14.53.29-150x84.jpeg 150w" sizes="(max-width: 1027px) 100vw, 1027px"> 
An increase in Ethereum volume and open interest would turn the tide for the asset, as it would signify increasing market strength.&nbsp; 
The post <a href="https://coingape.com/markets/3-drop-in-ethereum-price-could-push-800m-worth-of-eth-underwater/">Ethereum Price Analysis: 3% Drop Could Push $800M Worth of ETH Underwater</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Ethereum Price Analysis: 3% Drop Could Push $800M Worth of ETH Underwater

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