Check out ETH insights during 20251122 16:00 UTC
Long article:
Ethereum (ETH) prices have seen a slight decline recently, with mixed technical indicators and institutional interest amid widespread market liquidations. Here are the reasons:
1. Ecosystem development: New layer two solutions contribute to enhancing Ethereum's privacy and scalability in the decentralized finance (DeFi) space.
2. Market Instability: Significant liquidations in the market and unrealized losses for companies indicate ongoing risks.
3. Technical Crossroad: Despite a positive signal from the MACD indicator, the price of ETH is facing ongoing bearish pressures.
Positives
1. Institutional Interest: The SEC approved an exchange-traded investment fund (ETF) that includes Ethereum, and ETH spot ETFs saw inflows of $55.71 million on November 21.
2. Accumulation by Whales: One of the large holders bought 57,000 Ethereum ($156 million) from a centralized exchange (CEX), contributing to significant transfers, along with a positive signal from the MACD indicator.
Risks
1. Market Position Liquidation: Over $329 million worth of positions were liquidated in the market within 24 hours, significantly affecting long ETH positions due to selling pressure.
2. Institutional Exposure: BitMine Immersion, which owns 3.623 million ETH, is facing an unrealized loss estimated at $3.7 billion, reflecting the risks faced by corporate treasuries in the cryptocurrency space.
3. DeFi Activity Decline: The total value locked (TVL) in Ethereum has decreased, indicating a trend of users towards risk reduction, with future price expectations suggesting further declines to reach $2,602.
Community Sentiment
1. Divergent Outlooks: The cryptocurrency community is divided in its views, with some seeing the current pullbacks as an opportunity to accumulate more coins, while others warn of continued pressures.
