SNEAK PEAKS:
- Bears have grabbed control of the Ethereum market in the last 24 hours.
- The Chaikin Money Flow indicator shows that negative momentum is fading.
- Indicators suggest bear dominance will persist if bulls don’t step in.
On the last day, the price of Ethereum (ETH) slowly retraced, oscillating between $1,536.59 and $1,643.64. As of press time, the bears had effectively dropped the price to $1,552.63, a 5.01% drop from the 24-hour high, while the bulls had failed to maintain momentum and rebound.
During the downturn, the market capitalization declined by 4.96% to $190,000,807,257, while the 24-hour trading volume increased by 13.57% to $9,888,914,037. Despite the downward trend, Ethereum is the second most valuable cryptocurrency, behind only Bitcoin, and will remain so owing to its diverse range of applications, including smart contracts and decentralized banking (DeFi)
According to the ATR indicator, which points downward with a value of 27.43, volatility in the ETH market is decreasing, signaling that the market is consolidating in the near term as traders get more comfortable with the present price level. As a result, the data points to ETH being in a range-bound phase for the foreseeable future, with traders being hesitant to make any bold price predictions until additional changes in the market have taken place.
With a value of -84.49, the Bull Bear Power (BBP) indicator is in negative territory. Thus, this indicates that pessimistic sentiment within the market is predominating. It will likely lead to a decrease in the price of ETH if traders continue to bet on more price fluctuations in the near term. However, traders should proceed with caution for the time being, as this supports the ATR reading that the market is consolidating and not moving in either direction.
With a value of -0.15, the Chaikin Money Flow (CMF) now moves into the red. This shift further supports the view that outflows exceed inflows and indicates that market participants are uncomfortable with the present price level.
This uncertainty, in turn, signals that the market is creating negative momentum, which may soon lead to more downward pressure. Because of these considerations, investors should exercise extreme caution before investing in this market.
The Average True Range (ATR) on the 24-hour price chart is 69.34 and increasing, indicating a turbulent market and an unclear future for traders. This reading is a vital sign of a very volatile market since the ATR reveals that prices may quickly swing dramatically in either direction.
This ATR trend provides traders with optimism that they may take advantage of these volatility swings by placing stop-loss and take-profit limits on their positions to safeguard their cash and maximize their gains.
The BBP line reading of -127.44 portrays an even more negative picture, so traders should exercise caution. In contrast, trading in such a market as the BBP line, which measures the difference between buying and selling pressure, indicates that more traders are closing positions than initiating new ones.
Bearish momentum in the ETH market is ebbing as the Chaikin Money Flow (CMF) moves below the “0” line with a value of -0.02 and trends upward, signaling that positive sentiment is rising and that prices of ETH may climb soon. Analyzing the price activity of ETH versus its CMF, it is evident that the negative momentum that has been pulling prices down over the last several hours is dissipating.
Bulls must convert resistance levels to support levels and drive ETH prices higher if a reversal and bullish momentum are to take over the market.
Disclaimer: In good faith, we disclose our thoughts and opinions in our price analysis, as well as all the facts we give. Each reader is responsible for his or her own investigation. Reader discretion is advised before taking any action.
