Ethereum (ETH) Price Poised to Hit $2,200, Here’s Why
Zameer Attar3 Oct 20241 min read
In the ongoing conflict between Iran and Israel, Ethereum (ETH) appears bearish and poised for a significant price drop as it fails to hold an important support level. In addition, ETH’s on-chain metrics, such as the Long/Short ratio and future open interest further support this bearish outlook.
Current Price Momentum
At press time, ETH is trading near $2,365 and has experienced a price decline of over 4.25% in the past 24 hours. During the same period, its trading volume dropped by 11%, indicating lower participation from traders and investors, potentially due to fear of further price decline.
Ethereum Technical Analysis and Upcoming Level
According to the expert technical analysis, ETH recently broke its crucial support level of $2,400 and turned itself bearish. With the current market sentiment and this breakdown, there is a strong possibility that it could fall by 7% to reach the $2,200 level in the coming days.
However, ETH is currently trading below the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a downtrend. The 200 EMA is a crucial technical indicator that determines whether an asset is in an uptrend or downtrend.
Bearish On-Chain Metrics
This bearish thesis gains further support from on-chain metrics. According to the on-chain analytics firm Coinglass, ETH’s Long/Short ratio currently stands at 0.96, indicating bearish market sentiment among traders.
The long/short ratio is an on-chain metric that shows how traders are positioning themselves in long or short bets. If long positions significantly exceed short positions, the ratio will be above 1, and vice versa.
Additionally, ETH’s future open interest has dropped by 4.6% in the past 24 hours and has been steadily declining, indicating growing fears among traders following the recent breakdown of crucial support levels.
