- The January lows that launched the rally to $4k were retested in the early hours of July 5.
- It’s still too early to call for an Ethereum bottom, but investors can wait for more clarity in the coming week.
Ethereum [ETH] fell to January lows in recent hours. The drop below $2.9,000 was followed by a 27.5% drop over the next 12 hours.
At the time of writing, ETH has risen to $2366 from the low of $2.1k, an increase of 12.17%.
The smart money that bought almost $20 million when prices were $2.9k and $3.1k did not act correctly this time, causing an earlier perfect service record.
The launch pad of February’s rally was tested again
Source: ETH/USDT on TradingView
The price crash of the past few days has been brutal. In the last 24 hours alone, the Ethereum markets saw a surge $346.5 million value of liquidations. The daily RSI fell to 19, the lowest since August 18, 2023.
The daily session has not yet concluded, but as things stand, the rally from earlier this year has been fully recovered. The $2.5k-$2.6k zone will likely serve as resistance on the way up.
The OBV set a new low to describe the idea of extreme sales volume. The day’s trading volume amounts to 1.55 million ETH and this is still the highest in 2024.
While it may be a good reason to buy, more conservative traders and investors would like to see prices regain key support zones and stay above them for a few days before feeling confident enough to bid.
The futures market has wiped out a large number of ETH traders
Market crashes like these are not a good time to trade with leverage 270k+ crypto traders discovered over the weekend. Open Interest has fallen from $9.9 billion on August 3 to $7.35 billion at the time of writing.
Is your portfolio green? Check out the ETH profit calculator
The place where CVD was deeper supported the idea of intense selling. The liquidations of the past few days usually took a long time, as expected.
A jump to $2.5k was possible, but selling pressure may increase during the New York trading session.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.