Ethereum nosedives 23%, is a deeper correction coming?

The price of Ethereum fell to a lower than five months of approximately $ 2,300 Monday morning in Asia, the specter of a world trade war sparked a feeling of risk, disturbing investors.

Ethereum (Ethn) dropped by 23.6% for an intrajournation hollow of $ 2,368 on February 3, asian after US President Donald Trump announcement Trade prices on China, Canada and Mexico this weekend.

Higher import prices could increase inflation, which potentially leads to higher interest rates. This, in turn, sparked a feeling of risk, which put pressure on the prices of cryptocurrencies.

At the time of the press, the Altcoin market fell from 28% to almost 1.07 dollars, with several major altcoins like XRP (Xrp), Solana (GROUND), Dogecoin (DOGE), and Cardano (ADA), among others, recording losses between 15 and 30% in the last day.

Ethereum has experienced its largest liquidation event in the past two years, with $ 475.72 million liquidated from long positions and 127.78 million dollars from short positions in the last 24 hours. During the same period, the interest opened in its long -term market fell by 27% to 23.36 billion dollars, while its financing rate dropped at levels last time during the COVIDE COVID OF March 2020.

Ethereum’s sharp drop in open interest suggests that traders are retreating leverages, probably due to increased uncertainty of the market.

The alignment with this, the weighted social feeling for ETH has become negative by data of health.

Technical Ethics Analysis

On the daily table of the USDT, ETH moved below the 50 -day and 200 days mobile averages, signaling a strong short -term lower trend.

In addition, the Aroon indicator shows that the 100% decreased aroma while Roon Up has shown a 0% reading, which means that the asset could potentially see other losses during the next day .

However, the relative resistance index, with a reading occurring, suggests that the sale of pressure on ETH can ensure. As a rule, an asset undergoes a bullish overthrow once he has hit his bottom. This trend can be confirmed if the ETH restores above the 200-day mobile average.

Eth could bounce back

Despite the net sale, the signs of purchasing decrease are emerging, suggesting that some investors see the decline as an opportunity to purchase rather than a prolonged slowdown.

Investors have withdrawn $ 326.7 million from ETH discussions in the past three days, according to data of quince. As a rule, such outings suggest that investors accumulate during the decline, anticipating a recovery in prices once the bearish pressure is switched off.

The whales also started buying the largest altcoin after his recent price dive. According to a February 3 x job ONCHAIN’s goal, a whale bought 35,494 ETH, worth nearly $ 88 million.

In a later article, the platform said another whale buying $ ETH dollars after the recent drop.

In the comments at Crypto.News, Georgii Verbitskii, founder of Tymio, hypothesized that ETH could see a short -term rebound around $ 2,700, pulled by technical factors and a temporary relief of the feeling of the market. However, he noted that Ethereum has had trouble in recent days and, without powerful catalysts or new stories, it is likely to remain low against bitcoin.

“If the concerns of the global price are increasing or another wave of negative news strikes the market, we could see an further leg before ETH finds a more stable land,” he added.

Meanwhile, analyst Ali Martinez identified A parallel channel ascending in the action of Ethereum prices on the 3 -day graph. He noted that the ETH must hold the level of support of $ 2,750 to maintain its trajectory in the channel. If this level remained, Martinez projected a potential rebound at $ 6,760.

At the time of the press, Ether was still 18.4%, exchanging hands at $ 2,541 per room.