The prize from Ethereum fell to a low of almost five months of around $ 2,300 on Monday morning in Asia, while the ghost of a global trade war caused a risk-off sentiment, disturbing investors.
Ethereum (ETH) fell 23.6% to an intraday depot of $ 2,368 on 3 February Asian morning after US President Donald Trump announced the weekend trading rates in China, Canada and Mexico.
Higher import tariffs can yield inflation, which may lead to higher interest rates. This in turn has activated a risk-off sentiment that put pressure on the cryptocurrency prices.
From the moment of the press, the Altcoin market fell by 28% to nearly $ 1.07 trillion, with various large altcoins such as XRP (XRP), Solana (SOL), Dogecoin (Doge) and Cardano (ADA), among other things that Losses between 15-30 hours registered between 15-30 % on the last day.
Ethereum experienced the largest liquidation event in the past two years, with $ 475.72 million liquidated from long positions and $ 127.78 million of short positions in the last 24 hours. In the same period, the open interest in his futures market fell by 27% to $ 23.36 billion, while the financing percentage fell to levels that was last seen during the COVID crash of March 2020.
The sharp fall in the open interest of Ethereum suggests that traders withdraw from lifting tree positions, probably due to increased market uncertainty.
This has made the weighted social sentiment for ETH negative in accordance with santiment.
ETH Technical Analysis
On the daily USDT graphic, ETH has been moved under the advancing averages of 50 and 200 days, which indicates a strong bearish trend in the short term.
Furthermore, the Aroon -indicator shows the Aroon at 100% while Aroon Up showed a lecture of 0%, which means that it could possibly see more losses in the coming day.
However, the relative strength index, with a sold -up reading, suggests that the sales pressure can be relaxed on ETH. Usually an active bullish reversal as soon as it has touched its buttocks. This trend can be confirmed if ETH makes its recovery again above the 200-day advancing average.
ETH could be back
Despite the sharp sale, signs of dip purchase are on the rise, which indicates that some investors see the withdrawal as a buying option instead of a long -term decline.
According to the past three days, investors have included $ 326.7 million in ETH from fairs, according to facts van Coinglass. Usually such strokes suggest that investors accumulate during the dip, anticipating a price repair once Beerarish has decreased.
Whales have also started buying the biggest altcoin after the recent price decrease. According to a February 3 x after From Onchain Lens, a whale bought 35,494 ETH, worth almost $ 88 million.
In a subsequent position, the platform reported another whale that bought $ 1 million from $ ETH after the recent dip.
In reactions to crypto.news, Georgii Verbitskii, founder of Tymio, speculated that ETH could see a short term to $ 2,700, powered by technical factors and temporary exemption in market sentiment. However, he noted that Ethereum has struggled in recent days and, without strong catalysts or new stories, it is probably weak against Bitcoin.
“If the global rates escalate or another wave of negative news hits the market, we could see another leg down before Eth finds more stable soil,” he added.
Meanwhile, analyst Ali Martinez identified An increasing parallel channel in the price action of Ethereum on the 3-day graph. He noted that ETH should keep the support level of $ 2,750 to maintain its process within the channel. If this level applies, Martinez projected a potential rebound to $ 6,760.
At the time of the press, Ether was still of 18.4%and exchanged hands at $ 2,541 per coin.
