Ethereum (ETH) is still treading through a somewhat shaky ground, seeing a 1% drop in the last 24 hours. This downturn coincides with Bitcoin (BTC) miner Bit Digital's (BTBT) recent announcement of a strategic pivot toward Ethereum staking and treasury management. Market forces are changing, and the charts tell the story plainly. This indicates that the second-largest cryptocurrency could be staring down a possible bear market ahead.
Ethereum's Technical Struggles
Over the past day, Ethereum briefly surpassed the upper boundary of a descending channel and the 50-day Exponential Moving Average (EMA), signaling a potential bullish reversal. Unfortunately, this bullish momentum proved to be fleeting, with ETH getting rejected just under the important $2,500 resistance. This price is a key long-term resistance level. Moreover, the failure to hold a breakout above it has dulled the bullish case.
If Ethereum cannot reclaim the $2,500 level, this would be truly concerning. Losing the upper boundary support of the descending channel would trigger a bearish flag pattern confirmation. This pattern generally indicates a continuation of the downtrend, possibly resulting in more price decreases.
Another very important support level to pay attention to is the lower edge of a symmetrical triangle pattern. If Ethereum cannot maintain this support, its price may drop well under the $2,100 mark, prompting a larger sell-off. The collision of these technical indicators marks a line in the sand for the risky place Ethereum finds itself in today.
Liquidation Data and Market Sentiment
The recent ETH price volatility brought on by the Merge has led to millions of dollars in liquidations across the futures market. Over the last 24 hours, traders have liquidated $49.49 million Ethereum futures contracts. This behavior is a clear tell that there’s too much speculation and leverage in the market.
A deeper dive into the liquidation data shows a big difference on long vs short positions. More precisely, $30.09m in long positions were liquidated versus $19.40m in short liquidations. An even higher percentage of speculators were surprised by the sudden price drop. This unexpected reaction only increased the bearish sentiment surrounding Ethereum. Bears in Ethereum seem to have lost a lot of steam. This is on the heels of two bullish days of advances in response to the Israel – Iran ceasefire.
Institutional Interest and Treasury Strategies
Though the overall, bearish headwinds have made theirs waves across the market, Ethereum has not lost its charm, specifically amongst institutional investors. Nasdaq-listed BTCS also recently purchased 1,000 ETH last Friday, bringing its total treasury holdings to 14,600 ETH. This step further highlights the increasing acceptance of Ethereum as a strategic asset for corporate treasury management.
Of all the Ethereum treasuries held by publicly listed companies, SharpLink Gaming (SBET) has the largest one. Nevertheless, Bit Digital’s (BTBT) unexpected strategic turn might be a harbinger of corporate Ethereum ownership having the potential to remake this still-young landscape. The firm now has an estimated 188,478 ETH currently valued at around $457 million according to today’s prices. This large positioning toward Ethereum reinforces Bit Digital’s commitment to being a key player within the Ethereum ecosystem.
