• The H4 market structure remained bearish, with Ethereum dropping from $1527 to $1437 and liquidating $44 million worth of long positions.
• On-chain analysis showed that the liquidation cascade was partly responsible for the sell-off seen in March.
• The RSI appeared to retest the neutral 50 as resistance while the price neared a lower timeframe resistance band, yet this could easily result in Ethereum moving higher to $1500.
Bear Market Structure on 4-Hour Chart
The H4 market structure remained bearish, with news that Voyager was liquidating its Ethereum holdings intensifying the bearish pressure in the crypto market. On-chain analysis showed they were partly responsible for the sell-off seen in March. On the price charts, there was no respite yet from the bearish momentum, although bulls have seen some small joy over the weekend. This was unlikely to reverse the downtrend. Yet another imbalance on the chart, but will this one be filled?
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Realistic or Not – Here’s Ethereum’s Market Cap
The sharp drop on 3 March left a large imbalance on the 4-hour chart, highlighted in white and similar another fair value gap presented last week when Ethereum dived from $1527 to $1437 which were both highlighted in white. The first one did not see a meaningful fill, but it is close to seeing 50% filled at around $1482 area which has acted as resistance over 24 hours preceding press time. Meanwhile, OBV saw resurgence and highlight some buying pressure which is realistic or not here’s Ethereum’s market cap in BTC terms.
Liquidation Cascade Wipes Out Long Positions
On 9 March, Ethereum dropped from $1525 to $1415 within three hours resulting liquidating $44 million worth of long positions according data from Coinalyze Later, price fell further to 1368 but has posted bounce since then measuring gains of 6%. However Open Interest showed strong bearish sentiment remains present in market and wasn’t swayed by meager bounce either way.
Conclusion: Downtrend Likely To Continue
Ultimately market structure remained bearish on both 4 hour and daily chart meaning ETH likely sink towards new lows around 1420 providing lower timeframe support whereas beneath 1400 level 1280 could also experience demand arriving however rebound could easily move ETH towards 1500 area due volatility without trading volume weekends tend witness