Ethereum (ETH) has encountered consecutive upward trends, nearly approaching its all-time high recently. However, this momentum was abruptly reversed, leading to substantial losses for long traders in recent days.
Analysis of Ethereum on a daily time frame reveals a series of downward trends spanning the past three days. These recent declines followed consecutive upward trends that propelled its price to approximately $3,890 on May 27th. Currently, as of the time of writing, ETH is trading at approximately $3,740, reflecting a decrease of less than 1%.
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Source: AMBCrypto on TradingView
Additionally, despite the recent downturn, the overall trend for ETH remains bullish. Analysis of the chart indicates that it is currently trading above its short Moving Average (yellow line), which is considered a positive signal. Furthermore, examination of its Relative Strength Index (RSI) reveals a reading above 60, further confirming the existence of a robust bullish trend.
Based on the analysis of liquidation data on Coinglass, Ethereum long traders have witnessed a surge in liquidations over the past few days. On May 28th, coinciding with the onset of the price decline, the volume of long liquidations amounted to approximately $31.6 million.
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Source: Coinglass
The following day, this figure decreased to around $17.5 million, and as of the current writing, it stands at over $8 million. Consequently, the cumulative long liquidation volume over the last three days exceeds $57 million, in contrast to just over $18 million in short liquidation volume.
Ethereum's Investor Interest Remains Strong Despite Price Dip
Despite the price decline, Ethereum continues to attract significant interest. Analysis of the Open Interest chart on Coinglass reveals that Open Interest reached its peak at $17 billion on May 28th, marking the highest level in over a year.
Presently, as of the time of writing, Open Interest stands at around $16.7 billion, still representing one of the highest points in over a year. This sustained high level of Open Interest indicates ongoing investor engagement and strong interest in Ethereum.
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Source: Coinglass
Furthermore, analysis of the funding rate suggests that sentiment surrounding ETH remains positive. The chart indicates that the funding rate has remained above zero, currently standing at 0.013%. This suggests that buyers continue to dominate, indicating a strong conviction in the potential for further price appreciation in ETH.
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