Key Points
- Ethereum [ETH] experiences a decline, signaling a cooling-off period after recent highs.
- Despite the decline, derivative data shows continued market interest.
Ethereum’s [ETH] recent highs seem to be tapering off, as indicated by a noticeable decline. Bulls seem to be taking a break from the rally that was initially sparked by ETF hype.
Currently, the world’s largest altcoin has seen a 3.7% decrease over the last day and a 2.5% decrease over the past week. This decline comes as the market anticipates the approval of S-1 forms for ETFs.
Ethereum’s Market Performance
An analysis of TradingView data reveals that Ethereum is struggling to maintain its highs and is now consolidating at lower levels. The Moving Averages (MA50 in blue and MA200 in red) suggest a cooling-off period.
Initially, Ethereum’s price surged above both moving averages in a strong bullish move. However, it has since declined and is now trading below these key indicators, indicating a shift to bearish momentum in the short term.
The RSI, currently around 45, also suggests a lack of strong buying momentum, with values leaning more toward the oversold territory. Furthermore, Ethereum’s social volume has significantly decreased, suggesting a dip in public interest and sentiment toward the altcoin.
This decrease in social engagement might be contributing to the decline in Ethereum’s price, as less discussion could correlate with reduced trading activity and demand.
Continued Market Interest
Despite the decline, Ethereum’s derivatives market trading volume has sharply increased by over 70%, indicating continued market engagement. The long/short ratio across different platforms like Binance and OKX also shows more bullish sentiment.
On-chain data for Ethereum presents a predominantly bullish scenario. Currently, 89% of holders are making money at the present price, suggesting a strong upward trend that benefits the majority.
A significant concentration of the token by large holders (51%) implies potential for high volatility due to possible large-scale sell-offs. However, the market appears stable, with these major holders likely maintaining their positions.
Overall, it seems Ethereum bulls are cooling off temporarily, possibly due to the latest US jobs data. However, the rally is not yet over.
