Key Points
- Ethereum [ETH] has experienced a price decline, causing significant losses for long traders.
- Despite the recent downtrend, overall market sentiment for Ethereum remains positive and bullish.
Ethereum [ETH] recently underwent a series of uptrends, nearly reaching its all-time high. However, a trend shift has caused it to decline, leading to significant losses for long traders.
Ethereum’s Market Analysis
A daily time frame analysis of Ethereum reveals that it has gone through successive downtrends over the past three days. These followed a series of uptrends that pushed its price to around $3,890 on May 27th. As of now, ETH is trading at approximately $3,740, a less than 1% decline.
Despite the recent downtrend, Ethereum’s overall trend remains bullish. Current trading shows it above its short Moving Average (yellow line), a positive sign. The Relative Strength Index (RSI) also reads above 60, further indicating a strong bullish trend.
Liquidation Data and Market Sentiment
Coinglass’s liquidation data analysis reveals that Ethereum long traders have faced increased liquidations recently. On May 28th, when the price drop began, the long liquidation volume was around $31.6 million. The next day, it was about $17.5 million, and currently, it stands around $8 million. This brings the total long liquidation volume over the past three days to more than $57 million, compared to just over $18 million in short liquidation volume.
Despite the price drop, interest in Ethereum remains high. Coinglass’s Open Interest chart analysis shows that Open Interest peaked at $17 billion on May 28th, the highest level in over a year. Currently, the Open Interest is around $16.7 billion, still one of the highest points in over a year, indicating continued investor engagement and interest in Ethereum.
An analysis of the funding rate shows that market sentiment around Ethereum remains positive. The funding rate has stayed above zero, currently at 0.013%, suggesting that buyers continue to dominate, indicating a strong belief in a potential further rise in Ethereum (ETH)’s price.
