3 reasons why Etherum price is constantly falling

Eter’s (El) The latest sale of sale has seen to lose key 1,500 levels of support, and numerous technical indicators suggest that EST can be a deeper correction before entering the last recovery.

Data The price of the ether fell Below its realized price – Oncain metric, which recalculates the market value of cryptocurnance based on the price on which each coin last moved to the block.

According to the cryptocuant associate, TheKriptolikTrading an ethen price below this metric, which is a historical bear sign. When the price is realized above the price point, it usually acts as resilience and places “Most carriers suddenly in the loss position,” analyst said.

Added analyst:

“Powered below the realized price often denote the capitulation phase, where investors lose confidence and start sales mass.”

In June 2022. Ether’s realized price fell below the price point, which preceded a drop of 51% in ethense after Crash Crash Cras Cras Terra Luna. A similar scenario was in November 2022. year, when Metric fell under price before Ether dropped 35% FTX collapse.

Now that the similar scenario turns off, the current setting lightly resonates the previous phases below, with an ethnic price at risk of deeper correction.

Spot Etreum ETF flows remain weak

Spot Etherum Etfs Continue to weaken, with more than $ 3.3 million net outflow 8. April. In fact, these investment products record 94.1 million dollars outflows over the last two weeks against $ 13 million in inflow.

The lack of investor’s interest is in a relationship, especially as institutional demand is considered a key part of the ETRA appeal and played a role in May 2024. How are investors to hold ETF approval by US Securities and the ETF Care Commission.

This also reflects on all other ether products, with a report from coins point out This flows into Etherum investment funds are aligned with Medvednik, which can be seen on the market, with outflows of $ 37.4 million, recorded during the week ending 4. April.

Eth Open’s interest is low, and funding rates are negative

Another weighing factor of Eetr’s price is a lack of enthusiasm on the market of its derivatives, which was proven by low open interest and negative funding rates.

Open interest (OI) – Total number of extraordinary contracts and contract options – remains low, indicating reduced market participation and speculative activity. It is currently 16.7 billion dollars, a metric 48% below its top of $ 32.3 billion of witnesses 24. January.

Refusing the OI signal that declines the trust or interest of investors, which can deteriorate the price drop as pressure is dried up.

The complex question is a negative funding rate in the central constant futures market markets, which float below 0%, indicating that the bear is dominated by the market.

Related: Etherum Kit sells ET after 900 days, missing $ 27 million possible maximum finishing
When rates negatively, that means, it means short (cost rates) pays long to leave their positions, suggesting the dominance of the bear.

Competitive layer-1 Blackcains Outpace Etherum Network activity

Etherum’s high gas orders offer a competition opportunity Layer-1 BlicChains Focusing on high scalability to eat in its market share in space. Although part of the activity switched to Etherum Sailer-2 solutions, some users and developers decide for other upper layer alternatives such as BNB chainSolana, Avalanche and Tron.

As a result, the growth of network activity Etherum fell behind her rivals.

Etherum Unique Active Cash Wallets (UAV) – Addresses dealing with decentralized applications (DAPS) on the platform – has been rejected by over 33% compared to only 16% reduction Solana and 16% increase in the throne.

Similarly, the total number of transactions arranged at the Etherum network fell by 40.5% in the same period, while transactions on the BNB chain, salt and avalanches decreased by 16%, 30% and 23%, respectively. The transactions on the throne and phantom rose by 23% and 16%.

There is no indication that the factors of weight at Etr’s price – such as declining network activity and low demand for its ETF products – will soon reverse.

Although this does not guarantee that the price of the Etra will remain in an extended trend, the technical setting suggests that Etin’s price can bottom to $ 1,000.

This article does not contain investment advice or recommendations. Any investment and trade of trading involves risk, and readers should conduct their own research when making a decision.