The cryptocurrency market as a whole showed a downward trend, with a drop of 1.75%. Institutional investors sold cryptocurrencies amid the market downturn.
Institutions sell $35 million worth of ETH
On August 26, 2024, the on-chain analysis company Lookonchain posted on X (formerly Twitter) that two institutions sold more than 12,882 Ethereum (ETH) worth $35.3 million to centralized exchanges including Binance and Kraken.
According to lookonchain data, the institutions that sold Ethereum were Amber Group and Cumberland. The data showed that Amber Group transferred 6,443 ETH worth $17.62 million to Binance and Kraken, while Cumberland deposited 6,439 ETH worth $17.99 million to Binance.
These significant ETH sell-offs to CEXs indicate that selling pressure may be imminent.
Ethereum Price Prediction
According to expert technical analysis, ETH looks bearish as it is trading below the 200 exponential moving average (EMA) on the daily timeframe. Moreover, it is forming a bearish rising wedge price action pattern and there is a high chance that it will break out of the pattern soon.
If the sentiment remains bearish and ETH breaks out and closes on the daily chart below $2,645, a 12% drop to the $2,310 level is very likely.
Open interest decreases
Data from on-chain company CoinGlass shows that institutional and investor interest is gradually decreasing. ETH's open interest fell by 1% in the past hour and 2.3% in the past four hours. However, its open interest remained unchanged in the past 24 hours.
In addition to institutional sentiment, traders are also bearish on ETH. Currently, short positions significantly outnumber bullish long positions.
Key Liquidation Levels
According to the ETH exchange liquidation chart, the main liquidation levels are near $2,680 on the downside and $2,775 on the upside. According to data from CoinGlass, traders are overleveraged at these levels.
If the market sentiment remains bearish and the price drops to the $2,670 level, nearly $119 million worth of long positions will be liquidated. Conversely, if the market sentiment changes and the price surges to the $2,775 level, nearly $289 million worth of short positions will be liquidated.
These data clearly indicate that shorts are more active, and these large positions could create additional selling pressure.
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