Ethereum (ETH) Price Stumbles: Long Liquidations Rise Despite Bullish Signs

The price of Ethereum (ETH) has dipped over the past few days, leading to consecutive liquidations of long positions. This comes despite technical indicators suggesting an overall bullish trend for ETH. Let’s delve deeper into the recent price movement and analyze the underlying factors.

Ethereum Price Decline and Long Liquidations

Over the past three days, ETH has seen a price decline of over 3%, currently trading around $3,740. This downtrend follows a period of upticks that nearly pushed the price back to its all-time high.

Data from Coinglass reveals a rise in long liquidations coinciding with the price drop. Over $57 million worth of long positions were liquidated in the last three days.

Bullish Signs Remain

Despite the short-term price dip, several indicators suggest a long-term bullish trend for ETH. The daily chart shows ETH trading above its short moving average, typically a positive signal. The Relative Strength Index (RSI) remains above 60, further signifying a strong bullish outlook.

Open Interest Stays High

Despite the price fluctuations, investor interest in ETH appears robust. Open Interest, representing total outstanding derivative contracts, reached a peak of $17 billion on May 28th, the highest in over a year. This indicates sustained investor engagement with ETH, even amidst the recent price correction.

Grayscale Ethereum Trust Update

Grayscale Investments recently amended its registration statement for its Ethereum fund. This amendment clarifies the conversion process of the trust into a spot Ether ETF, highlighting growing institutional interest in ETH.

The filing reveals the trust holds roughly 2.5% of all Ether in circulation, making it a significant ETH investment vehicle.

JPMorgan Lowers Spot Ether ETF Demand Forecast

A research report by JPMorgan predicts lower demand for spot Ether ETFs compared to their Bitcoin counterparts. The report cites factors like Bitcoin’s first-mover advantage and the lack of staking capabilities for approved spot Ether ETFs. This could dampen investor enthusiasm for spot Ether ETFs initially.

ETH/USD Technical Analysis

ETH is currently consolidating around the $3,720 support level. A break below this level could trigger further price declines.

Resistance levels sit at $3,800 and $3,850, which ETH needs to overcome for a potential price upswing.