On the 8th and 9th of November, Ethereum experienced a total liquidation of $432.34 million in leveraged positions. Consequently, the ETH price decreased from $2,236 to $2,060. This represented the most significant wave of liquidations for Ethereum since August 19th, when short positions amounting to $1.02 billion were liquidated in a single day. At the time, Ethereum was trading just above 2.1k. Swing traders and investors would be keenly watching the $2,000 psychological level to assess if the next wave of selling was upon us.
In other news, Vitalik Buterin articulated reasons why Ethereum as a store of value is deemed “more sensible to concentrate on” compared to ETH as a fee-burning token. The 30-day rolling Ethereum Open Interest Z-Score has decreased to -2.87. Data indicates that crypto analyst highlighted a significant and abrupt decrease in Open Interest associated with ETH contracts. The OI was at $5.236 billion, compared to the 30-day average of $5.850 billion, with a standard deviation of $213.77 million. This indicated that the prevailing open interest was approximately 2.87 standard deviations beneath the 30-day average.
Meanwhile, persistent selling pressure has pushed the leading altcoin’s price down towards $2,100. Declining open interest and downward price pressure may be attributed to the closure of existing positions, whether through liquidations or manual exits. It is not necessarily a sign that there were sizable short positions opened, the analyst wrote. The ETH price structure was bearish after the loss of the swing point at $2,358. The $2,400 area has since been retested as a resistance zone, and the price has reacted bearishly from there in November.
The OBV exhibited a relatively stable trend over the past ten days; however, it has been experiencing a gradual decline since early October. The MACD was also declining and signaled strong bearish momentum at the time of writing. The 2,000 round-number support was one level to watch. The 1,840-1,950 area demand zone where ETH consolidated in July and August was also a place investors could anticipate a bullish reaction from.
