The broader cryptocurrency market faced a notable decline, leading to a reduction of over $2 billion in market capitalisation and triggering liquidations that surpassed $470 million. Amidst market volatility, altcoins experienced considerable declines, with Ethereum leading the way in these losses. As a result, Ethereum broke through the lower boundary of its consolidation range, hitting a low of 1844. As of this writing, ETH was at $1873, showing a decline of 5.72% on the daily charts, thus continuing a week-long trend of bearishness. As Ethereum faces notable downturns, investors, especially those with large stakes, have responded with concern and adjusted their strategies accordingly. As the market continued to drop, a significant player linked to Matrixport showed signs of distress and ramped up his investments in long positions on ETH. Lookonchain reports that the accumulation continues, leading to the whale now holding 115,000 ETH, worth $215.4 million. When a large investor boosts their stake in long positions during a decline, it suggests they are offsetting short sellers to avert liquidation.
In this process, the whale reduced leverage and lowered the risk of liquidation. As ETH fell below $1.9k, there was a significant rise in liquidation levels, especially impacting long positions. Data indicates that Ethereum experienced over $110 million in long liquidations between February 22nd and 23rd. On-chain monitors documented a recent liquidation event: Machibigbrother experienced a partial liquidation once more following the recent market downturn. Machi encountered liquidation in three positions, totalling 7.9k ETH, valued at more than $15 million. Despite the liquidation, Machi opened additional long positions and now holds 1.7k in ETH, valued at 3.2 million. Furthermore, as the market faced a downturn, the rate of liquidation rose, prompting some investors to respond with panic and withdraw from their positions. The Buy Sell Volume Pressure to Price indicator showed notable capitulation among all participants.
The pricing pressure has turned negative, dropping to a level of 15, and net pressure has also moved into negative territory. A drop for these two into the negative zone indicated the seller’s total dominance over the market. Alongside this, the altcoin’s Demand Index has once again fallen into negative territory, indicating a possible shift towards a bearish trend. At this time, this indicator was at -0.14, showing a decrease in buy-side liquidity and a rise in seller dominance. As a result, Ethereum’s Connors RSI has dropped deeper into oversold territory, currently at 15.9, highlighting the prevailing influence of sellers in the market. Similarly, the DMI ADX smoothing indicator showed significant downward momentum, with the positive index declining to 7. At the same time, the negative index remained around 32. When momentum indicators drop to these levels, they signal considerable downside risk and the potential for the trend to continue.
If the current sentiment continues, ETH may experience further declines in its price trajectory, with 1746 serving as a crucial support level. However, should the broader market experience a downturn, ETH is likely to maintain its position at $1.9k and aim for a recovery towards $2k. Ethereum fell to a low of $1844 after breaking through the $1.9k support level during a wider market decline. An Ethereum whale has consistently expanded its long positions, raising its total holdings to 115,000 ETH, worth $215.4 million, in a calculated effort to avoid liquidation.