Ethereum’s recent price drop to $1,736 on April 30 led to $67 million in liquidations. Despite a brief surge earlier in the month, ongoing fluctuations and patterns suggest another correction may be imminent. Market sentiment, macroeconomic factors, and possible approval for ETH ETF staking by US regulators may influence the next moves for ETH.
Ethereum recently faced a significant downturn, plummeting to $1,736 on April 30. This sharp decline resulted in liquidations that soared to $67 million, as market participants reacted to the abrupt price drop. The current trading environment suggests Ethereum is likely to see a further correction before any potential bullish momentum emerges. Currently, Ethereum’s price is grappling to surpass the psychologically significant $2,000 mark after dipping below $1,400 earlier this month.
On April 22, there was a brief surge in price, leapfrogging from $1,550 to $1,800, buoyed by optimism around Bitcoin which lifted the broader cryptocurrency market toward a $3 trillion valuation. However, that wave of optimism quickly faded when Ethereum fell back on April 30, hitting a local low again.
The rapid decline led to increased liquidations for Ethereum, exceeding Bitcoin’s figures. Specifically, $67 million in ETH positions were liquidated, comprising $48 million in long positions and $19 million in shorts, per data from CoinGlass. This kind of liquidation often triggers anxiety among short-term traders, compounding the selloff effect in the market.
The chart analysis has revealed the formation of a head and shoulders pattern on Ethereum’s one-hour trading chart. As traders monitor these signals, forecasts indicate that Ethereum may experience a correction towards $1,770 before any likelihood of a bullish trend can be confirmed. Yet, should the prices drop below $1,760, the situation could deteriorate further, sending Ethereum toward the $1,700 range.
Conversely, there is potential for Ethereum to escape the effects of this head and shoulders pattern if it manages to break past the $1,830 resistance. Currently, the relative strength index (RSI) stands around 54, indicating a neutral market status that suggests low volatility for ETH at the moment.
Along with technical indicators, market sentiment is crucial in influencing Ethereum’s price fluctuations. Factors such as macroeconomic conditions and significant buying by large holders—known as whales—will also come into play. A major development to watch is the approval of ETH ETF staking in the US, as Grayscale has held discussions with the US Securities and Exchange Commission, seeking approval for the ETHE fund’s staking.
In summary, while Ethereum showcases potential for a bounce back, market watchers should remain cautious about possible sell-offs that could loom. Consult with a financial advisor for tailored advice and ensure you verify any information in the fast-changing landscape of cryptocurrency.
