Ethereum’s native token has experienced a significant downturn in the recent cryptocurrency market correction, falling to just over $2,000 earlier today, its lowest price in nearly two months.
Market Sentiment
The token has declined by 17% since its monthly high of $2,425, and the overall market sentiment appears bearish. While Santiment Intelligence suggests this could be a catalyst for a major trend reversal, the current environment is, at best, underwhelming.
Technical Analysis
After failing to hold support levels at $2,400, $2,300, $2,200, and $2,100 earlier this week, the $2,050 level gave way during today’s decline. Analyst Ted Pillows believes this opens the door for further corrections. He warned that if ETH loses the psychological support at $2,000, new lows are likely.
Liquidation and Open Interest
Analyst CW noted that a substantial number of ETH long positions were liquidated during the price drop. Data from CoinGlass indicates that the total value of liquidated ETH longs exceeded $250 million daily, second only to Bitcoin’s $380 million.
CW added that as short positions closed, Open Interest declined significantly, and the Net Position Delta increased. They concluded that high-leverage long positions are being liquidated while bearish bets are closing, potentially leading to market stabilization.
Whale Activity
Despite the bearish trend, there is a potential positive development for the Ethereum ecosystem. According to Lookonchain, a prominent “OG whale” has returned to the market. This market participant, known for a 376x return on their initial ETH investment from a decade ago, has begun accumulating again.
On-chain data reveals that this whale has acquired over $8 million worth of ETH at prices around $2,050. Previously, they sold when the altcoin was trading above $2,850.
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