Ethereum long traders trapped: Will ETH decline in Q4 as well?
The post Ethereum long traders trapped: Will ETH decline in Q4 as well? appeared on BitcoinEthereumNews.com.
Ethereum traders trapped in longs as market declines. Ethereum shows strength in revenue and TVL dominance. Ethereum [ETH] continues to play a major role in the cryptocurrency market, and as we enter the last quarter of the year, several key factors are expected to influence its price movement. Toward the end of September, retail traders increased their exposure to Ethereum, trying to capitalize on price dips. However, this led to many being trapped in losing positions as ETH continued to decline. With similar patterns reappearing, traders are cautious about whether ETH will continue to fall in the final months of the year. Source: Hyblock Capital ETH price action signals bearishness Looking at Ethereum’s recent price action, it seems likely that the ETH/USD pair could continue to decline. On the daily chart, ETH is trading below the 150, 50, and 20 exponential moving averages (EMAs), signaling a bearish trend. This is further confirmed by the S&P 500 (SPX) index, which has also flipped below the 150 EMA, adding more weight to the negative outlook. Additionally, volume bars show that sellers remain in control, reinforcing the idea that ETH could disappoint traders by continuing to drop. Source: TradingView Impact of ICOs and Grayscale on ETH On-chain data adds to the bearish sentiment, particularly concerning initial coin offerings (ICOs) and Grayscale’s activity. A significant Ethereum ICO participant recently sold 19,000 ETH, worth around $47.54 million. This participant initially received 150,000 ETH during the ICO, with a purchase price of $46,500, now valued at $358 million. The fact that early Ethereum whales are selling off their holdings contributes to the downward pressure, especially since ETH was bearish during the entire fourth quarter after a green September in past years. Source: Lookonchain In addition, two dormant Grayscale ETF wallets have deposited 5837 ETH, worth $14.17…
Filed under: News - @ October 3, 2024 3:23 pm