Monday, March 4, 2024

Ethereum Traders Feel the Burn: $33 Million Lost as Overheated Market Comes Crashing Down.

As the cryptocurrency market corrected on Monday, the price of Ethereum fell by almost 7% from the previous day. For the first time since December 3, Bitcoin fell below $40,000, a psychologically significant barrier, leading to the downturn.

The price of ETH, which is correcting to its lowest point in the last two weeks, may be bottoming out as investor mood improves and the funding rate of the altcoin drops.

Ethereum traders suffered a single-day loss of $32.73 million.

According to Ethereum’s Network Realized Profit/Loss (NRPL) measure, traders lost $32.73 million on Monday. Since October 13, this is the first time Ethereum traders have experienced a loss.

On Monday, the price of ether fell from $2,467 to $2,300. On Tuesday, the cryptocurrency fell even further, reaching a low of $2,285. Although Ethereum’s price is currently declining, there are certain on-chain indications that point to a potential recovery for the altcoin.

Ethereum’s financing rate and weighted sentiment, two important indicators, point to a potential reset in the price trend of ETH. Data from the crypto intelligence tracker Santiment shows that trader mood has improved, rising from a 2024 low of – 0.89 on Monday to negative 0.75 on Tuesday.

Concurrently, the financing rate is thought to be a crucial indicator of the direction of Ethereum’s price. The futures market will cool off if the financing rate drops and trader confidence rises at the same time.

After the current downturn is finished, the price of Ethereum can start to rise again.

At $2,232, the 50% Fibonacci retracement level of its slide from April 2022 to June 2022, the Ethereum price may find support on the downside. If the present selling pressure at this point lessens, the price of ETH may rise again and reach its peak of $2,446 in 2023.

If the daily candlestick closes below $2,232, the bullish argument might be refuted. The bearish imbalance zone between $2,086 and $2,056 may serve as the next support level if the price of Ethereum continues to decline.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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