Ethereum (ETH) Price Analysis: Bearish Headwinds and Possible Support Levels
Ethereum (ETH) has experienced a significant drop in price, reaching $1,620 on September 2. On-chain analysis and derivatives market data suggest that bearish trends may continue in the near future.
Main Points:
- Nearly $450 million has been wiped off Ethereum Futures markets in the first four days of September.
- A downtrend in Open Interest, which measures the value of active or unsettled derivative contracts, indicates reduced interest and participation in ETH futures markets.
- Long-term ETH investors have entered panic mode, as evidenced by the decline in ETH Mean Coin Age, indicating a major selling frenzy.
- Mean Coin Age and recent price corrections have shown a correlation, suggesting further downswings in ETH price may occur.
- The $1,600 support level is at risk, and Ethereum’s price may retrace toward $1,500 if this level fails to hold.
Hot Take:
The recent drop in Ethereum’s price and the bearish indicators from on-chain analysis and derivatives market data suggest a challenging period for ETH. Long-term investors selling and decreasing interest in futures markets add to the downward pressure. While there is a possibility of initial support at the $1,600 level, a failure to hold that support could lead to further price declines. However, if the bulls can trigger a rebound above $1,800, they may have a chance to reclaim higher price levels.