The sell-off on the cryptocurrency market caused billions worth of losses for retail and institutional investors who held BitcoinOther cryptocurrencies. But Ethereum’s performance was arguably one of the worst cases all over the market, considering its capitalization and liquidity.
DespiteThe macros and technical disasters of EthereumWe are beginning to see the first signs of a possible short-term reversal. Relative Strength Index suggests. The price indicator divergence is quite often used to determine short-term reversal points at the end of each rally.
InThe current Ethereum case, the cryptocurrency’s price is showing quite a strong divergence with the indicator on a four-hour timeframe. TheUnfortunately, daily timeframes do not provide any signals that could indicate that the midterm reversal may be around.
TheSince then, divergence from the indicator has been occurring June 13.
Macro data remains alarming
The main driver of the current downward rally is the negative macro data that includes massive volumes of liquidations on spot, derivatives and lending markets. WithMarket is seeing a lot of liquidation, so no new funds are available. This leaves the market with only strong selling pressure.
The last two weeks were the hardest for Ethereum in a long time, including massive liquidation volume on the lending and borrowing market, with Celsius facing risks of liquidation, 3AC losing investors’ funds and Beacon Chain experiencing a block reorganization that questions the security of Ethereum 2.0. AtPress time EthereumIt is currently trading at $1.033.
EthereumThis is not the only DeFi sector that is experiencing difficult times. No new funds are coming in and the biggest players are leaving.