ETH’s fall to $2.1K seems inevitable as bearish sentiment persists

The price of Ethereum has been trending down for the past two months and has yet to show a sign of recovery.

In the last 24 hours alone, ETH fell to a monthly low of just over $2,300.

Technical Analysis

By Edris Derakhshi

The daily chart

On the daily time frame, the price has been moving lower since the breakdown of the 200-day moving average, which is around $3,200. The relative strength index also shows values ​​below 50%, indicating that momentum is clearly bearish.

As a result, the most likely short-term scenario is for the market to move lower towards the $2,100 support zone. Generally, whenever ETH trades below its 200-day moving average, the market trend can be considered bearish.

The 4 hour chart

The 4-hour chart of the ETH/USDT pair shows a clearer picture of the recent downtrend. After the price missed the $3,000 and $2,700 support zones, it has consolidated above the $2,100 level.

Over the past few days, however, the asset has retested the $2,700 level once again, but has been rejected to the downside. Given the fact that the market is making lower highs and lower lows, a move down towards the $2,100 level in the coming days seems very likely.

sentiment analysis

By Edris Derakhshi

Ethereum Funding Fees

Since the perpetual futures market has a significant influence on the short-term price action of the crypto market, analyzing the aggregate sentiment of futures traders can provide some clues about future direction.

This chart shows funding rates for ETH, visualizing whether buyers or sellers are executing their orders more aggressively (using market orders) in the futures market.

As the chart suggests, funding rates have fallen back below zero, which is a clear sign of bearish sentiment. However, although not always a good sign, negative funding rates are often one of the first signs of a market recovery as they can lead to short liquidation cascades. However, this very much depends on whether there is enough buying pressure at the time.

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