The price of Ethereum has been falling over the past couple of months and is showing no signs of recovery yet.
In the last 24 hours alone, the ETH rate has fallen to a monthly low of just over $2,300.
Technical analysis
Edris Derakhshi
Daily chart
On the daily time frame, the price has been declining since breaking the 200-day moving average, which is near the $3,200 mark. The relative strength index is also showing values below 50%, which indicates a clear bearish momentum.
As a result, the most likely scenario in the short term is a market decline towards the $2100 support zone. Overall, as long as ETH is trading below its 200-day moving average, the market trend can be considered bearish.
4 hour chart
The 4-hour chart of the ETH/USDT pair shows a clearer picture of the recent downtrend. After losing the $3,000 and $2,700 support zones, the price consolidated above the $2,100 level.
However, in recent days, the asset has tested the $2,700 level again but was rejected lower. Given the fact that the market is now creating lower highs and lows, a fall back to the $2,100 level seems very likely in the coming days.
Sentiment Analysis
Edris Derakhshi
Ethereum Funding Rates
Since the perpetual futures market has a significant impact on short-term price movements in the cryptocurrency market, analyzing the aggregate sentiment of futures traders can provide some clues about the future direction.
This chart shows ETH funding rates, clearly showing whether buyers or sellers are more aggressive in executing their orders (using market orders) in the futures market.
As the chart shows, funding rates have fallen below zero again, a clear sign of bearish sentiment. However, while not always a good sign, negative funding rates are usually one of the first signs of a market recovery, as they can lead to short liquidation cascades. However, this largely depends on whether there is sufficient spot buying pressure.
