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Ethereum price has retraced 6.83% in the last 24-hours after hitting $2,770 on Aug 14, market data shows how bearish headwinds from SHORT traders nullified the dovish US CPI impact.  ETH Price Tumbled 6.8% in 24 Hours August began with uncertainty for Ethereum, but the price experienced steady upward momentum in the past week, largely attributed to Grayscale. The US-based investment firm sparked increased market demand after it announced the launch of new cryptocurrency trusts for SUI, TAO, and MKR. This development, dated August 5, sparked optimism among investors, who saw it as a sign of deepening institutional adoption of crypto. This bullish sentiment extended to ETH, driving the price up by 30% between August 5 and August 14, as reflected in the chart. Ethereum Price Analysis ETHUSD | TradingView However, the release of dovish U.S. CPI data on August 14 shifted market dynamics. The initial optimism faded as investors turned their attention to the stock markets, causing a significant decline in cryptocurrency prices. The ETH price fell by 6% within 24 hours, erasing a large portion of its recent gains. The chart above shows how Ethereum stumbled as a result, with concerns mounting over a potential sharp correction in the coming days. The market’s reaction suggests that Ethereum could now face increased bearish pressure, with derivatives markets hinting at further downside risks. Short Traders Nullified the Dovish CPI The initial optimism surrounding the CPI data was short-lived as bearish sentiment began to dominate Ethereum’s derivatives markets. A key indicator of this shift is the Taker Buy/Sell Ratio, which measures the ratio of buy orders to sell orders in the market. The chart above illustrates how the Ethereum Taker Buy/Sell Ratio dropped significantly, from 1.07 on August 8 to 0.94 by August 14. Ethereum Price vs ETH Taker BuySell Ratio…

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Filed under: News - @ August 15, 2024 2:21 pm