ETH Price

‘Stupid money’ Ether investor loses over $2M in six months — 3 lessons to learn

How can traders learn from common investment mistakes and reduce their market risks accordingly?

An anonymous Ethereum investor has lost more than $2 million trading Ether (ETH) since Sept. 9, 2022, on-chain data shows.

Buying Ether high, selling low

Spotted by on-chain monitoring resource Lookonchain, the “stupid money” trader spent $12.5 million in stablecoins to buy 7,135 ETH after it rallied 10% to $1,790 in September 2022. But a subsequent correction forced the trader to sell the entire stash for $10.51 million.

*Ethereum investor’s transaction history from September 2022. Source: Lookonchain*

As a result, the trader lost nearly $1.75 million. Interestingly, waiting and selling at today’s price would have resulted in a smaller loss of $1.14 million.

1/ Please don't blindly follow the trend to buy $ETH after the price rises for a period of time, and don't panic sell after the price drops.

A stupid money who loses more than 2M $USDC in half a year will tell you how dangerous this behavior is.

— Lookonchain (@lookonchain) February 22, 2023

The investor’s trades reemerged in February as ETH price had risen by approximately 10%. Data shows that $7.65 million in ETH was acquired on Feb. 16, only for it to be sold eight hours later as ETH price dropped, resulting in a loss of another $324,000.

*Ethereum investor’s transaction history from February 2023. Source: Lookonchain*

3 Ether investment lessons to learn

Traders can use such examples to learn from others’ mistakes and reduce their investment risks with proven strategies. Let’s take a look at some of the most basic tools that can help reduce losses.

Don’t rely on just one fundamental

The investor first traded stablecoins for ETH on Sept. 12, just three days before the long-awaited transition from proof-of-work to proof-of-stake via the Merge upgrade.

The Merge, however, turned out to be a “sell-the-news” event. Thus, going extremely bullish on Ether based on one strong fundamental was a poor decision.

Moreover, going all in while relying on one indicator, particularly a widely-anticipated news event, is often a losing strategy, which is why traders should consider multiple factors before making a decision.

*Ethereum fund outflows picked momentum ahead of the Merge. Source: CoinShares*

For instance, one such metric was institutional flows. Ether investment funds suffered outflows worth $61.6 million a week before the Merge, according to CoinShares’ weekly report, suggesting that “smart money” was leaning bearish.

Hedge with put options

Hedging with options in Ether trading enables investors to purchase options contracts opposite their current open positions. Therefore, investors could mitigate risk by opening a put option contract against their bullish spot.

A put option gives a holder the right, but not the obligation, to sell ETH at a predetermined price on or before a particular date. So, if the spot Ether price drops, the investor could sell the asset at a pre-agreed price, thus protecting themself from losses in ETH’s value.

Don’t go all in; check momentum

Do not put all your eggs in one basket regardless of how much capital you can throw around.

Instead, entering a position in increments could be a safer strategy while keeping some funds on the sidelines. Thus, traders can buy ETH during a short- or long-term bull run but can spare some capital to buy during potential dips, while relying on multiple technical indicators for cues.

For instance, momentum oscillators like the relative strength index (RSI) reveal whether Ether is oversold or overbought on specific timeframes. So a strategy of going long when the RSI reading is close to or above the 70 and forming a lower high has a high chance of failure.

The Ethereum daily chart below shows the two instances when the above-mentioned investor bought ETH alongside the RSI forming a lower high.

*ETH/USD daily price chart. Source: TradingView*

Ultimately, traders’ mistakes can serve as opportunities to learn what works for an investor and what doesn’t. The main takeaway is that investors should enter a market with a definite plan based on their own analysis and risk appetite.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum price prints ‘death cross’ after losing 13% versus Bitcoin from 2023 peak

ETH price is in danger of losing another 20% versus Bitcoin by March, based on a mix of technical and fundamental indicators.

Ethereum’s native token, Ether (ETH), has printed a death cross technical pattern versus Bitcoin (BTC) for the first time since May 2022, suggesting more pain ahead for ETH/BTC in the coming weeks.

Previous ETH price death cross preceded 27.5% drop

A death cross appears when an asset’s short-term 50-period moving average moves below its long-term 200-period moving average. Such a chart pattern was seen in December 2007, foahead of the global economic crisis.

Similarly, the ETH/BTC’s previous death cross in May 2022 preceded an approximately 27.5% price correction, dropping in parts as investors reduced exposure to altcoins and sought safety in Bitcoin amid the Terra collapse.

*ETH/BTC daily price chart. Source: TradingView*

The latest ETH/BTC death cross could lead to a similar short-term selloff, primarily due to the U.S. Securities and Exchange Commission’s crackdown on crypto staking services. Staking is a key feature of many blockchains, including Ethereum.

Related: Why is Bitcoin price up today?

Meanwhile, capital flows to and from Bitcoin and Ethereum-based funds also reveal BTC gaining the upper hand. Interestingly, Bitcoin-based investment funds have attracted $183 million in 2023 compared to Ethereum’s $15 million, per CoinShares’ latest weekly report.

Next targets for ETH/BTC

The next potential targets to watch for ETH/BTC are best visible on the weekly chart.

Namely, the 0.067-0.065 BTC area, which has served as a strong support level in recent history. A successful rebound here could have ETH price rebound toward its multi-month descending trendline resistance (black) near 0.075 BTC.

*ETH/BTC weekly price chart. Source: TradingView*

Conversely, a decisive break below the 0.067-0.065 BTC range could have ETH enter an extended selloff toward the 200-week exponential moving average (200-week EMA; the blue wave) near 0.055 BTC, down about 20% from current price levels.

Notably, the 200-week EMA served as a bottom to the November 2021-June 2022 bear cycle.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

Bitcoin and select altcoins such as ETH, OKB, ALGO and THETA may extend their up-move after a brief correction.

After the impressive rally in January, Bitcoin (BTC) seems to be taking a breather in February. This is a positive sign because vertical rallies are rarely sustainable. A minor dip could shake out the nervous longs and provide an opportunity for long-term investors to add to their positions.

Has Bitcoin price bottomed?

The opinion remains divided, however, on whether Bitcoin has bottomed out or not. Some analysts expect the rally to reverse direction and nosedive below the November low while others believe the markets will continue to move up and frustrate the traders who are waiting to buy at lower levels.

*Crypto market data daily view. Source:* *Coin360*

In an interview with Cointelegraph, Morgan Creek Capital Management founder and CEO Mark Yusko said “the crypto summer” could begin as early as the second quarter of this year.

He expects risk assets to turn bullish if the United States Federal Reserve signals that it will slow down or pause interest rate hikes. Another potential bullish catalyst for Bitcoin is the block reward halving in 2024.

Could the altcoins continue their up-move while Bitcoin consolidates in the near term? Let’s study the charts of Bitcoin and select altcoins that may outperform in the next few days.

BTC/USDT

Bitcoin has been gradually correcting since hitting $24,255 on Feb. 2. This indicates profit booking by short-term traders. The price is nearing the strong support zone between $22,800 and $22,292. The 20-day exponential moving average ($22,436) is also located in this zone, hence the buyers are expected to defend the zone with all their might.

The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that bulls have the edge. If the price turns up from the support zone, the bulls will again attempt to catapult the BTC/USDT pair to $25,000. This level should act as a formidable resistance.

On the downside, a break below the support zone could trigger several stop losses and that may start a deeper pullback. The pair could first drop to $21,480 and if this support also fails to hold up, the next stop may be the 50-day simple moving average ($19,572).

*BTC/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the price is trading inside an ascending channel but the RSI has been forming a negative divergence. This suggests that the bullish momentum may be weakening. A break and close below the channel could tilt the short-term advantage in favor of the bears. The pair could then fall toward $21,480.

Alternatively, if the price rebounds off the support line of the channel, the bulls will again attempt to kick the pair above the channel. If they manage to do that, the pair may resume its uptrend.

ETH/USDT

Ether (ETH) has been trading near the $1,680 resistance for the past few days. Usually, a tight consolidation near an overhead resistance resolves to the upside.

While the upsloping 20-day EMA ($1,586) indicates advantage to buyers, the negative divergence on the RSI suggests that the bulls may be losing their grip. If bulls want to assert their dominance, they will have to propel and sustain the price above $1,680.

If they do that, the ETH/USDT pair may rally to $1,800. This level may again act as a resistance but if bulls do not allow the price to dip below $1,680, the rally may stretch to $2,000.

Instead, if the price turns down and plummets below the 20-day EMA, the ETH/USDT pair could tumble to $1,500. This is an important support level to monitor because a bounce here could keep the pair range-bound between $1,500 and $1,680. On the other hand, if the $1,500 support cracks, the pair may dive to $1,352.

*ETH/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears have pulled the price below the 20-EMA. This is the first indication that the bulls may take a step back. There is minor support at the 50-SMA but if it fails to hold, the pair may slide to $1,550 and then to $1,500.

Conversely, if the price turns up from the moving averages, the bulls will again attempt to thrust the pair above the overhead resistance. If they succeed, the pair may resume the uptrend.

OKB/USDT

While most cryptocurrencies are well below their all-time high, OKB (OKB) hit a new high on Feb. 5. This suggests that bulls are in command.

Some traders may book profits near the overhead resistance of $44.35 as it may act as a formidable resistance. If the price turns down from the current level but rebounds off the 20-day EMA ($37), it will suggest that bulls continue to buy the dips.

That could increase the possibility of a break above $45. The OKB/USDT pair could first skyrocket to $50 and thereafter to $58.

If the price turns down and breaks below the 20-day EMA, it will indicate that the traders may be rushing to the exit. The pair could then drop to $34 and later to the 50-day SMA ($30).

*OKB/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are trying to protect the $44.35 level. The pair could turn down and reach the moving averages, which is an important support to keep an eye on. If the price bounces off the moving averages, the bulls will again try to overcome the barrier at $45 and start the next leg of the uptrend.

Contrarily, if the price breaks below the 50-SMA, the selling could intensify and the pair may slump to $36 and then to $34. Such a move could delay the resumption of the uptrend.

ALGO/USDT

Algorand’s (ALGO) recovery reached the breakdown level of $0.27 on Feb. 3. The bears defended this level but the bulls have not given up much ground. This suggests that the bulls expect the relief rally to continue.

The upsloping 20-day EMA ($0.24) and the RSI in the positive territory indicate that bulls have the upper hand. If the price turns up from the 20-day EMA, the likelihood of a break above $0.27 increases. The ALGO/USDT pair could then travel to $0.31 where the bears may try to offer strong resistance.

If the price turns down from this level but bounces off $0.27, it will suggest that the downtrend could be over in the short term. The pair could then attempt a rally to $0.38.

This positive view could invalidate in the near term if the pair turns down from the current level and slides below $0.23. The pair could then dive to the 50-day SMA ($0.21).

*ALGO/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are guarding the $0.27 level but a minor positive is that the bulls have not allowed the price to stay below the 50-SMA. If the price turns up from the current level, the bulls will again try to clear the overhead hurdle. If they do that, the pair could pick up momentum and surge toward $0.31.

Contrary to this assumption, if the price continues and breaks below the moving averages, the pair risks a drop to $0.23. The bears will have to smash this support to gain the upper hand.

THETA/USDT

Theta Network (THETA) successfully completed a retest of the breakout level on Feb. 1, indicating that bulls have flipped the downtrend line into support.

The bulls will try to push the price to the overhead resistance at $1.20. This level may act as a minor hurdle but if bulls do not give up much ground from $1.20, the THETA/USDT pair could extend its up-move to $1.34. This is an important level for the bears to defend because if this resistance crumbles, the pair could soar to $1.65.

If bears want to stop the bulls, they will have to quickly pull the price back below the 20-day EMA. The pair could then fall to $0.97 and later to the 50-day SMA ($0.89).

*THETA/USDT 4-hour chart. Source: TradingView*

The pair bounced off the $0.97 level, which becomes an important level to watch out for on the downside. A breach of this level is likely to tilt the advantage in favor of the bears and open the doors for a possible drop to $0.85.

The rally is facing resistance near $1.20 but the upsloping 20-EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers push the price above $1.20, the momentum should pick up for a rally toward $1.34.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin 7-month high ‘dominance’ has BTC price eyeing $25K — Will Ethereum spoil the rally?

The Bitcoin dominance index could start falling again if the price of Ethereum can pare its 5% losses versus BTC year-to-date.

Bitcoin (BTC) is rapidly regaining its lost dominance in the crypto market so far into 2023.

On Jan. 30, Bitcoin accounted for 44.82% of the total crypto market capitalization, the highest since June 2022. In September 2022, Bitcoin’s dominance index was as low as 38.84%.

The index typically rises when most crypto investors reduce their exposure to smaller tokens and seek safety in Bitcoin. The reasons include Bitcoin’s better liquidity and lower volatility than alternative cryptocurrencies, or altcoins, primarily in a bear market.

Bitcoin’s market dominance to grow further?

As of Jan. 31, Bitcoin is up 38% year-to-date (YTD) at around $23,000. In comparison, the second-largest cryptocurrency, Ether (ETH), gained 30% in the same period, showing most investors remain gravitated toward Bitcoin so far in 2023.

From a technical perspective, the Bitcoin dominance index may rise further in the coming weeks as it reclaims its 50-week exponential moving average (the red wave in the chart below) as support.

*Bitcoin dominance index weekly performance chart. Source: TradingView*

In doing so, the index could rise toward 48.5%, which has acted as resistance since May 2021.

On the other hand, independent market analyst Rekt Capital sees the Bitcoin dominance index rising toward 46%, which coincides with the upper trendline of a giant descending channel pattern, as shown in the monthly-timeframe chart below.

*Bitcoin dominance index monthly performance chart. Source: TradingView, Rekt Capital*

The short-term bullish scenario in the Bitcoin dominance index chart appears in line with a similar upside in the spot Bitcoin market, with bulls eyeing a run-up toward $25,000.

The strength of #bitcoin on the 4-hour charts continues to be impressive.

While price action has trended sideways for over a week, short term indicators (MACD, RSI) have once again reset… and are now ramping higher.

A price surge to ~$25k is probable.

(Not investment advice) pic.twitter.com/QaPbNrxtxZ

— Dr. Jeff Ross (@VailshireCap) January 29, 2023

Ethereum vs. Bitcoin th main driver of BTC dominance

The bearish argument is that the Bitcoin dominance index may start losing its upside momentum after testing its descending channel resistance, as it had done on several occasions in the recent past.

“Bitcoin Dominance is further overextending beyond red on the Monthly TF,” notes Rekt Capital while citing the index’s horizontal trendline support near 44.11%. The analyst adds:

“A Monthly Close above red could set BTCDOM for another dip into red which would benefit Altcoins.”

*Bitcoin dominance index monthly price chart (zoomed). Source: TradingView, Rekt Capital*

The above analysis appears as ETH eyes a potential bullish reversal versus Bitcoin in the coming weeks.

Notably, the ETH/BTC pair has been consolidating near its support area (purpled) inside the 0.0676- 0.0655 BTC range since Jan. 24.

The ETH/BTC pair will likely see a rebound rally toward its descending trendline resistance (blacked) around 0.075 BTC if it continues to hold the support area. That, in turn, would reduce Bitcoin’s “dominance” in the cryptocurrency market as Ethereum’s share would rise toward 20%.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin 7-month high ‘dominance’ has BTC price eyeing $25K — Will Ethereum spoil the rally?

The Bitcoin dominance index could start falling again if the price of Ethereum can pare its 5% losses versus BTC year-to-date.

Bitcoin (BTC) is rapidly regaining its lost dominance in the crypto market so far into 2023.

On Jan. 30, Bitcoin accounted for 44.82% of the total crypto market capitalization, the highest since June. In September, Bitcoin’s dominance index was as low as 38.84%.

Bitcoin’s market dominance to grow further?

As of Jan. 31, Bitcoin is up 38% year-to-date at around $23,000. In comparison, the second-largest cryptocurrency, Ether (ETH), gained 30% in the same period, showing most investors remain gravitated toward Bitcoin so far in 2023.

From a technical perspective, the Bitcoin dominance index may rise further in the coming weeks as it reclaims its 50-week exponential moving average (the red wave in the chart below) as support.

In doing so, the index could rise toward 48.5%, which has acted as resistance since May 2021.

The short-term bullish scenario in the Bitcoin dominance index chart appears in line with a similar upside in the spot Bitcoin market, with bulls eyeing a run-up toward $25,000.

The strength of #bitcoin on the 4-hour charts continues to be impressive.

While price action has trended sideways for over a week, short term indicators (MACD, RSI) have once again reset… and are now ramping higher.

A price surge to ~$25k is probable.

(Not investment advice) pic.twitter.com/QaPbNrxtxZ

— Dr. Jeff Ross (@VailshireCap) January 29, 2023

Ethereum vs. Bitcoin the main driver of BTC dominance

The bearish argument is that the Bitcoin dominance index may start losing its upside momentum after testing its descending channel resistance, as it had done on several occasions in the recent past.

“Bitcoin Dominance is further overextending beyond red on the Monthly TF,” noted Rekt Capital, while citing the index’s horizontal trendline support near 44.11%. The analyst adde:

“A Monthly Close above red could set BTCDOM for another dip into red which would benefit Altcoins.”

The above analysis appears as ETH eyes a potential bullish reversal versus Bitcoin in the coming weeks.

Notably, the ETH/BTC pair has been consolidating near its support area (purpled) inside the 0.0676- 0.0655 BTC range since Jan. 24.

The ETH/BTC pair will likely see a rebound rally toward its descending trendline resistance (blacked) around 0.075 BTC if it continues to hold the support area. That, in turn, would reduce Bitcoin’s dominance in the cryptocurrency market as Ether’s share would rise toward 20%.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum ‘shark’ accumulation, Shanghai hard fork put $2K ETH price in play

Ethereum on-chain data reveals a considerable rise in the number of Ether shark addresses with weeks before its hard fork in March.

Ether (ETH) price technicals suggest that 35% gains are in play by March 2022 due to several bullish technical and fundamental factors.

Ethereum price rises above two key moving averages

On Jan. 8, Ether’s price crossed above its 21-week exponential moving average (21-week EMA; the purple wave) and 200-day simple moving average (200-day SMA; the orange wave).

Historically, these two moving averages have separated bull and bear markets. When ETH price trades above them, it is considered to be in a bull market, and vice versa.

*ETH/USD daily price chart feat. 21-week EMA and 200-day SMA. Source: TradingView*

The last time when Ether crossed above its 21-week EMA and 200-day SMA was in April 2022. But this was a fakeout, in part due to the collapse of Terra (LUNA) the following month.

But while Ether’s MA crossover does not guarantee further gains, the upside potential becomes greater if one looks at it in conjugation with other bullish factors, described below.

Ethereum’s Shanghai hard fork, shark accumulation

Ether’s price has risen by up to 20% in the first two weeks of January 2023, driven upward by an easing macro outlook and growing anticipation of Ethereum’s upcoming Shanghai upgrade.

The upgrade is expected to go live in March, and will enable withdrawals of staked ETH.

Several experts, including Messari research analyst Kunal Goel and IntoTheBlock head of research Lucas Outumuro, believe the Shanghai upgrade will make staking Ether more attractive despite the sell-off risks of unlocking a large chunk of Ether’s supply.

Meanwhile, a rise in Ethereum’s richest addresses is already underway by entities called “sharks” that hold anywhere between 100 and 10,000 ETH. The number of sharks has grown by 3,000 since November 2022, according to data from Santiment.

*Ethereum shark addresses. Source: Santiment*

This suggests strong accumulation of ETH, which may be a key reason behind ETH’s current rebound so far in 2023.

ETH price eyes breakout above key trendlin

From a technical perspective, Ether is eyeing a breakout above a resistance confluence, namely the 50-3D EMA (the red wave) near $1,395, and a descending trendline that comes as a part of a prevailing symmetrical triangle.

*ETH/USD three-day price chart. Source: TradingView*

In other words, a decisive close above the confluence could have ETH pursue a run-up toward its next upside target at its 200-3D EMA (the blue wave) near $1,880, up around 35% compared to current price levels.

Interestingly, the $1,880 level was instrumental as resistance in May 2022 and August 2022.

Conversely, a pullback from the confluence would increase Ether’s possibility of undergoing a correction toward the symmetrical triangle’s lower trendline around $1,200, or a 15% price decline from current levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum ‘shark’ accumulation, Shanghai hard fork put $2K ETH price in play

Ethereum on-chain data reveals a considerable rise in the number of Ether shark addresses with weeks before its hard fork in March.

Ether (ETH) price technicals suggest that 35% gains are in play by March 2022 due to several bullish technical and fundamental factors.

Ether price rises above two key moving averages

On Jan. 8, Ether’s price crossed above its 21-week exponential moving average (21-week EMA; the purple wave) and 200-day simple moving average (200-day SMA; the orange wave).

Historically, these two moving averages have separated bull and bear markets. When ETH’s price trades above them, it is considered to be in a bull market, and vice versa.

*ETH/USD daily price chart featuring 21-week EMA and 200-day SMA. Source: TradingView*

The last time Ether crossed above its 21-week EMA and 200-day SMA was in April 2022. But this was a fakeout, in part due to the collapse of Terra (LUNA) the following month.

But while Ether’s MA crossover does not guarantee further gains, the upside potential becomes greater if one looks at it in conjugation with other bullish factors, described below.

Ethereum’s Shanghai hard fork, shark accumulation

Ether’s price has risen by up to 20% in the first two weeks of January 2023, driven upward by an easing macro outlook and growing anticipation of Ethereum’s upcoming Shanghai upgrade.

The upgrade is expected to go live in March and will enable withdrawals of staked ETH.

This suggests a strong accumulation of ETH, which may be a key reason behind ETH’s current rebound so far in 2023.

ETH’s price eyes breakout above key trendline

Interestingly, the $1,880 level was instrumental as resistance in May 2022 and August 2022.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum ‘March 2020’ fractal hints at price bottom — But ETH bears predict 50% crash

Ethereum market analysts desperately search for the bottom but ETH price technicals aren’t excluding further downside below $700.

Ethereum’s native token, Ether (ETH), eyes a strong bullish reversal after losing 25% from its November high of $1,675, according to a bottom fractal spotted by independent market analyst Wolf.

Can Ethereum price co its March 2020 fractal?

Wolf compares Ethereum’s multi-month downtrend between May 2018 and March 2020 with a similar but relatively shorter correction after July 2022. If the move repeats, that means the price of Ether has bottomed in November 2022, according to the analyst, as shown below.

*ETH/USD 2019-20 and 2022 price performance comparison. Source: TradingView/Wolf*

Wolf draws cues from March 2020’s Ethereum price crash triggered by the Covid-19 pandemic — a black swan event. Similarly, ETH price was pushed down in November 2022 due to another black swan — the collapse of cryptocurrency exchange FTX.

But ETH/USD rebounded aggressively after the March 2020 crash, boosted by the Federal Reserve’s rate cuts that injected more money into the economy, part of which flowed into the crypto market.

Similarly, in November 2022, Ether’s modest recovery post-FTX “black swan” coincides with growing expectations of the Fed slowing its rate hikes. Thus, Ether has a good chance at repeating the March 2020 fractal to new monthly highs.

Moreover, independent market analyst, Cold Blood Shiller, sees a “clear breakout point” on Ethereum’s daily chart, namely its Awesome Oscillator (AO) and Relative Strength Index (RSI). Both indicators appear to have been flipping bullish recently, as shown below.

*ETH/USD daily price chart. Source: TradingView/Cold Blood Shiller*

Bears anticipate ETH losing another 50%

Nevertheless, Ether is currently down 75% from its record in November 2021 with the market seeing multiple bull traps since.

Market analyst Aditya Siddhartha Roy notes the possible formation of a similar bull trap in the current miniuptrend, which he argues risks exhaustion near a multi-month descending resistance trendline.

*ETH/USD daily price chart. Source: TradingView/Aditya Siddhartha Roy*

A decisive pullback from the descending trendline would push Ether toward $700, which may be a “possible bottom,” Roy explains.

Roy’s analysis aligns with Ethereum’s symmetrical triangle setup, best visible on its longer-timeframe chart shown below, whose technical downside target is around $675.

In other words, the ETH/USD pair is still at risk of dropping another 50% in early 2023.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ethereum sets record ETH short liquidations, wiping out $500 million in 2 days

New all-time highs in short liquidations — at least when measured in dollars — point to overly bearish market sentiment.

Ether (ETH) is setting liquidation records this week as a comparatively modest price uptick reveals how bearish the market has become.

Data from on-chain analytics platform CryptoQuant confirmed that United States dollar-denominated short liquidations hit a new all-time high on Oct. 25.

Two days, half a billion dollars of ETH shorts

It is not just Bitcoin (BTC) causing the bears severe pain this week — data from exchanges also shows that Ethereum shorters have suffered heavy losses.

ETH/USD delivered fairly impressive gains on Oct. 25-26, rising from lows of $1,337 to highs of $1,593 on Bitstamp before retracing, according to data from Cointelegraph Markets Pro and TradingView.

*ETH/USD 1-day candle chart (Bitstamp). Source: TradingView*

While nothing unusual for crypto and for altcoins, in particular, the market changes triggered by the price action stood out.

As with Bitcoin, the market had become heavily short ETH, expecting a trip to new macro lows after weeks of sideways action and failed breakouts.

It thus only took around $250 of upside to liquidate more short positions (in U.S. dollar terms) than ever before — $275 million on Oct. 25, with another $250 million the day after.

*USD-denominated ETH short liquidations chart. Source: CryptoQuant*

Over half of a billion dollars worth of positions were wiped out in two days, and not even a record in ETH — the value of the positions totaled 189,638 ETH and 161,986 ETH, respectively.

*ETH-denominated ETH short liquidations chart. Source: CryptoQuant*

“$ETH short squeezes for the last two consecutive days. Daily short liquidations across all exchanges reached an all-time high,” CryptoQuant CEO, Ki Young Ju, commented on the data.

BTC flushes out speculators

As Cointelegraph reported, the picture on Bitcoin was broadly similar as price performance solidified.

According to the latest figures from on-chain analytics resource Coinglass, Oct. 25 and 26 saw $328 million and $332 million of short liquidations, respectively, across exchanges.

*BTC liquidations chart. Source: Coinglass*

The tally for Oct. 27 was already much lower at $5.7 million, this firmly in line with established norms as Bitcoin consolidated above $20,000.

Nonetheless, exchange users were betting on the rally continuing, as evidenced by the largest-ever daily BTC balance decrease on major exchange Binance.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ethereum sets record ETH short liquidations, wiping out $500 billion in 2 days

New all-time highs in short liquidations — at least when measured in dollars — point to overly bearish market sentiment.

Ether (ETH) is setting liquidation records this week as a comparatively modest price uptick reveals how bearish the market has become.

Data from on-chain analytics platform CryptoQuant confirmed that United States dollar-denominated short liquidations hit a new all-time high on Oct. 25.

Two days, half a billion dollars of ETH shorts

It is not just Bitcoin (BTC) causing the bears severe pain this week — data from exchanges also shows that Ethereum shorters have suffered heavy losses.

ETH/USD delivered fairly impressive gains on Oct. 25-26, rising from lows of $1,337 to highs of $1,593 on Bitstamp before retracing, according to data from Cointelegraph Markets Pro and TradingView.

While nothing unusual for crypto and for altcoins, in particular, the market changes triggered by the price action stood out.

As with Bitcoin, the market had become heavily short ETH, expecting a trip to new macro lows after weeks of sideways action and failed breakouts.

It thus only took around $250 of upside to liquidate more short positions (in U.S. dollar terms) than ever before — $275 million on Oct. 25, with another $250 million the day after.

Over half of a billion dollars worth of positions were wiped out in two days, and not even a record in ETH — the value of the positions totaled 189,638 ETH and 161,986 ETH, respectively.

“$ETH short squeezes for the last two consecutive days. Daily short liquidations across all exchanges reached an all-time high,” CryptoQuant CEO, Ki Young Ju, commented on the data.

BTC flushes out speculators

As Cointelegraph reported, the picture on Bitcoin was broadly similar as price performance solidified.

According to the latest figures from on-chain analytics resource Coinglass, Oct. 25 and 26 saw $328 million and $332 million of short liquidations, respectively, across exchanges.

The tally for Oct. 27 was already much lower at $5.7 million, this firmly in line with established norms as Bitcoin consolidated above $20,000.

Nonetheless, exchange users were betting on the rally continuing, as evidenced by the largest-ever daily BTC balance decrease on major exchange Binance.