Ethereum lost momentum on Monday after reaching a peak of $2,314. It was on the verge of edging closer to $2,400 but failed due to selling congestion.
Worsening geopolitical issues exacerbated the selling pressure. Iran recently launched retaliatory strikes on US bases, claiming it wants the US to feel the consequences of its actions. Its recent attacks follow its closure of the Hormuz Strait, which many deem as further escalations.
The recent happening indicates that the conflict is far from over. It is worth noting that the crypto market has suffered significant retracements as a result. A further downtrend may be in sight, and investors are preparing for this scenario.
Lookonchain revealed that some ETH holders are selling off their bags. One such is BlackRock. Following the outflow it recorded last week, it moved 8,172 ETH to Coinbase Prime a few hours ago. The transfer marks its first sale after almost a month of consistent buying.
Ethereum exchange-traded funds are seeing notable outflows at the time of writing. The highlighted platform noted ETF netflow is -7,049 ETH, with Ishares accounting for most of the outflow.
Several reports on Lookonchains indicate that traders are closing their long positions as they anticipate a further decline. One such ended his long trade with gains of $1.27 million and opened a short position elsewhere.
Data from Coinglass indicates that the asset is experiencing an increase in short positions over the last 24 hours, accounting for over 50% of the open orders. It is worth noting that such an increase may place more pressure on prices, resulting in further declines.
However, the bulls are staging a comeback, with long positions making up over 53% of the total orders in the last hour, led by Binance.
Ethereum Sees More Onchain Interactions
A user noted a growing phenomenon in the Ethereum Network. The ecosystem is seeing a spike in the number of unique addresses interacting weekly. The explosion in this metric suggests that the project is gaining more attention. A closer look at the presented chart reveals that this is the highest the metric has attained since its inception.
While this may indicate an impending uptrend in price, other metrics remain significantly weak. Ethereum is receiving less attention on the spot market as trading volume plummeted by over 28%. The drop in trading volume, accompanied by an outflow in ETFs, may be a recipe for further price declines.
The 4-hour chart shows the asset trading sideways since the start of the day. It may be gearing for a breakout as it prints its largest candle, rebounding from a dip to $2,200 and edging closer to $2,300.
The bulls need to maintain the ongoing trajectory, as the constricting Bollinger bands suggest that the range-bound movement may persist. Nonetheless, the relative strength is at 42. It dropped below 30 on Sunday, becoming oversold. The ongoing price increases follow this indication, suggesting that ETH may see further upside movement.
However, it is essential to note that fundamentals remain negative, increasing the chances of a dip to $2,100. The largest altcoin rebounded off the mark on Sunday, indicating notable demand concentration around it. However, Ethereum may lose this level within the next six days.
Previous price movements point to a massive to $1,900 if this happens.
