Ethereum is set to hit $2,200, here’s why
In the ongoing conflict between Iran and Israel, Ethereum (ETH) seems to be very weak and ready for a major price drop as it failed to hold an important support level. Additionally, ETH on-chain metrics such as the long/short ratio and futures open interest further support this bearish outlook.
Current price momentum
At press time, ETH is trading near $2,365 and has experienced a price drop of over 4.25% in the last 24 hours. During the same period, trading volume fell by 11 percent, indicating lower participation by traders and investors, possibly due to fears of further price cuts.
Ethereum technical analysis and upcoming level
According to expert technical analysis, ETH recently broke the critical support level of $2,400 and reversed itself. With the current market sentiment and this breakdown, there is a high probability that it will fall by 7% to reach the $2,200 level in the coming days.
However, ETH is currently trading below the 200 exponential moving average (EMA) on the daily time frame, indicating a bearish trend. The 200 EMA is an important technical indicator that determines whether an asset is trending up or down.
Bearish On-Chain Indicators
This depression thesis finds further support in chain measurements. According to on-chain analytics firm Coinglass, the ETH Long/Short ratio currently stands at 0.96, indicating bearish market sentiment among traders.
The long/short ratio is an on-chain metric that shows how traders position themselves with long or short bets. If long positions significantly outnumber short positions, the ratio will be greater than 1 and vice versa.
Additionally, open demand for ETH futures has fallen by 4.6% in the last 24 hours and has been trending lower, indicating growing fear among traders following the recent breakdown of key support levels.
